By Staff
The $1.8T Norges Bank Investment Management is closing its real estate office in Tokyo, citing a strategic review in its announcement of the decision.
Norges, which manages Norway’s sovereign wealth fund, opened its Tokyo office in 2015, completing two direct real estate investments in the city. In a press release, the investment manager noted that, as part of a strategic review, it has determined that expanding its Japan real estate portfolio through direct investments was no longer a priority.
“Given the limited portfolio size, we believe maintaining a dedicated local presence is no longer warranted when considering the associated operational costs and organizational capacity required,” said the release.
Although the office, which currently employs five people, will close, Norges said it will keep its existing real estate investments in Japan.
The fund also said the closure won’t impact its equity and fixed-income investments in the country. “Japan is the fund’s second-largest equity market exposure, and we will continue to be a significant investor in the Japanese market.”
As of March 31, 2025, the fund had US$109B invested in Japan, across equity, fixed income, and real estate.
