Norway’s sovereign wealth fund to pump $11 billion into U.S. real estate

Norway’s Government Pension Fund Global, Oslo, plans to invest about $11 billion as it enters the U.S. real estate market, according to Yngve Slyngstad, CEO of Norges Bank Investment Management, which oversees the $660 billion sovereign wealth fund.

The fund, mandated by the country’s finance ministry to eventually put 5% of assets in property, wants one-third of that, or 1.7%, in the U.S., said Mr. Slyngstad in an interview. The pool held 0.3% in real estate, 60.3% in stocks and 39.4% in bonds as of Sept. 30, according to its quarterly report.

“The U.S. is the next real estate market to invest in,” Mr. Slyngstad said.

The sovereign wealth fund is focusing on conservative property investments, such as large office complexes in major cities and developed malls, Mr. Slyngstad said. It has already bought commercial property in London, Paris, Frankfurt, Berlin and Sheffield in the U.K., and on Thursday made its first real estate investment in Switzerland, buying a Zurich office complex from Credit Suisse Group for 1 billion Swiss francs ($1.08 billion).