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Norwegian fund to invest $11B in U.S. real estate

December 03, 2012 02:15PM

The world’s largest  sovereign wealth fund is planning to pump approximately $11 billion into the U.S. real estate market, Businessweek reported.

Norway’s $660 billion fund will eventually transfer 5 percent of its assets into property and it wants at least one-third of that investment — 1.7 percent — to be in the U.S., according to Yngve Slyngstad, CEO of Oslo-based Norges Bank Investment Management, which manages the pool.

Previously the fund held only 0.3 percent in real estate, keeping 60.3 percent in stocks and 39.4 percent in bonds, according to a quarterly report through the end of September.

“The U.S. is the next real estate market to invest in,” Slyngstad told Bloomberg.

Norway’s fund experienced record loses in 2008 and in search of lower risks and better returns began expanding its real estate investments in 2010. [Businessweek] –Christopher Cameron