Norges Bank Investment Management, whose CEO Nicolai Tangen is seen here, on Wednesday announced plans to invest $542.6 million in a New York City building. File Photo by Ole Berg-Rusten/EPA
The world’s largest wealth fund, Norges Bank Investment Management, announced a $542.6 million in a New York City building.
The Norway-based fund, run by the country’s central bank, said Tuesday in a release it will purchase a 95% ownership stake in the property at 1177 Avenue of the Americas
The firm will purchase the coveted Sixth Avenue building from the California State Teachers’ Retirement System and Silverstein Properties in a joint venture with Beacon Capital Partners, which will take a 5% stake in ownership.
According to Norges, the 1-million-square-foot building in New York is to be overseen by Beacon.
The property was valued at $571.1 million and the sale is expected to be finalized in this year’s third quarter.
NBIM’s real estate portfolio holdings span 15 countries with nearly 500 properties totaling over $16 billion just in the United States.
More than two-thirds of the fund — nearly 70% — is invested in equities and established in part to invest the profits of Norway’s massive oil and gas sector as Norway is seeks to be one of the first nations to mine in the Arctic region.
Norges already owns multiple buildings in prime Manhattan real estate under its broad portfolio, including a 45% stake in Times Square Tower.
The independent NBIM holds stakes in Apple, Tesla, Nvidia, Taiwan-based chipmaker TSMC, German defense contractor Rheinmetall and owns around 1.5% of globally listed stock.
It operates on a strict set of ethical codes under a public body mandated by the Norwegian parliament in northern Europe’s progressive Scandinavia.
In August, Norges announced it was divesting more than $2 billion in stock as Caterpillar’s eighth single largest shareholder after the fund’s independent ethics council agreed there was “no doubt” that Caterpillar products are being used by Israeli authorities in the Gaza Strip to, according to Norges, “commit extensive and systemic violations of international humanitarian law.”
