Norwegian Sovereign Wealth Fund Acquires Major U.S. Office Property

Norway's sovereign wealth fund has expanded its portfolio by acquiring a 97.7% stake in an office building located in Menlo Park, in the San Francisco Bay Area. The organization, known as Norges Bank Investment Management (NBIM), which is the largest wealth fund in the world, paid $217 million for this purchase.

The investment was made in partnership with DivcoWest, a U.S. real estate investment firm. Together, they took over the ownership of the property from a joint venture that included Clarion Partners and Invesco Real Estate.

The transaction was completed without any debt being utilized, and the property was purchased free of financial liabilities. NBIM noted that the total valuation of the property was $222 million.

DivcoWest, which acquired the remaining 2.3% stake, will also manage the asset on behalf of the joint venture. This move demonstrates NBIM's ongoing interest and confidence in the U.S. real estate market, particularly in valuable office properties in prime locations.