Norges Bank Investment Management Buys into U.K. Property Development

By Nick Hedley

Norges Bank Investment Management, which manages the world’s largest sovereign wealth fund, has signed an agreement to buy a 48.8% stake in a property that will be developed into a life sciences facility at Capital Park in Cambridge, the U.K.

The Norwegian fund is buying the stake from the Public Sector Pension Investment Board (PSP Investments) for £90.2 million (US$101.3 million), valuing the property at £185 million ($207.8 million).

PSP Investments will retain a 48.8% interest in the property, and Longfellow Real Estate Partners will own the remaining 2.5% stake. Longfellow will perform the asset management functions at the property on behalf of the joint venture.

The property comprises 242,000 square feet of office and ancillary space in a 42-acre campus.

Norges Bank Investment Management has 11.7 trillion kroner (US$1.1 trillion) assets under management.