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Oil fund in $480m San Francisco office deal

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Oil fund in $480m San Francisco office deal
425 Market Street in San Francisco. Photo: Regis
09:50 CET+01:00
Norway's Oil Fund has struck a $480m deal to buy stakes in office blocks in San Francisco and Washington DC, as it continues its push to increase the proportion of property investments in its portfolio.
Norges Bank Investment Management (NBIM), which manages Norway's Government Pension Fund or Oil Fund, teamed up for the deal with the US insurer MetLife, with whom it did a deal to buy stakes in a financial centre in Boston in December. 
"With these two investments, we are expanding our joint venture with MetLife in line with our strategy and original intent," Karsten Kallevig, chief investment officer for real estate at Norges Bank Investment Management (NBIM), said.
“Our growing partnership with NBIM speaks to our strong capabilities in the asset-management business,” said Robert Merck, global head of real estate investments at New York-based MetLife.
Under the deal MetLife will hold 52.5 percent of the buildings, and NBIM 47.5 percent.  
NBIM, which is tasked with investing Norway’s taxes in oil and gas, revenues from government stakes in oil gas, and dividends from its stake in Statoil, made its first foray into US property in February last year, when it formed a joint venture with TIAA-CREF, which manages teachers' retirement funds. 

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