NEWS

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.