The Norwegian sovereign wealth fund has completed its second deal in a £15bn investment drive, with the purchase of 50% of a €1.4bn Parisian portfolio from Axa.
Norges Bank Investment Management and Axa Real Estate Investment Management have set up a 50:50 joint venture which will see Norges buy a stake in a portfolio of Parisian offices valued at €1.4bn.
NBIM manages the Norwegian Government Pension Fund Global, the sovereign wealth fund backed by Norway’s oil and natural resources income. It is currently making its first push into property investment, and wants to transfer 5% of its holdings into real estate, which will amount to an investment of £15bn over the next 4-7 years.
Its first investment was a 25% stake in Regent Street, bought last year from the Crown Estate for £492m, and it had previously said it would target London and Paris for its first investments.
The joint venture portfolio will comprise the following assets: 12-14 Rond Point des Champs-Elysées; 1-3 / 2 rue des Italiens; 16 avenue Matignon; 24-26 rue Le Peletier; Meudon Campus, 92 Meudon; OPUS 12, 92 La Défense (pictured); and 31-33 rue de Verdun, 92 Suresnes.
Karsten Kallevig, chief investment officer real estate of Norges Bank Investment Management, said: “This acquisition enables us to gain a significant exposure to the Paris office market, one of our key European target markets. We look forward to a long and beneficial partnership with the AXA Group.”
Pierre Vaquier, Chief Executive of AXA Real Estate, added: “The Joint Venture will allow AXA France Insurance Companies to reallocate capital and diversify into other European markets, especially the UK and Germany, while maintaining exposure to this important market by retaining a significant stake in the Joint Venture. We will continue to manage the portfolio.”
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