Norges Bank Investment Management Expands in Real Estate with $1 Billion Acquisitions
Deal News | Mar 20, 2025 | Zawya
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has announced two major investments in European real estate totaling $1 billion. NBIM has formed a new joint venture with Shaftesbury Capital, acquiring a 25% stake in a London property portfolio for £570 million ($740.03 million), valuing the overall portfolio at £2.66 billion. In a separate transaction, the fund agreed to purchase a 40% stake in AXA Lifestyle Housing, which operates student housing and co-living spaces in France and Spain, for €240 million ($261.02 million). Shaftesbury Capital will retain a 75% interest in the London assets, while AXA subsidiaries will maintain 60% ownership in their housing properties. The transactions with Shaftesbury Capital and AXA Lifestyle Housing are expected to finalize by early April and the first quarter of the year, respectively.
Sectors
- Real Estate
- Investment Management
Geography
- Norway – The article discusses investment activities of the Norway sovereign wealth fund managed by Norges Bank Investment Management.
- United Kingdom – One of the real estate portfolios involved in the transaction is located in London, United Kingdom.
- France – AXA Lifestyle Housing, involved in the transaction, operates student housing properties in France.
- Spain – AXA Lifestyle Housing, involved in the transaction, operates co-living properties in Spain.
Industry
- Real Estate – The article focuses on major investments in real estate portfolios in London, France, and Spain, indicating significant activity in the real estate sector.
- Investment Management – The involvement of Norges Bank Investment Management highlights the article's relevance to the investment management industry, particularly in sovereign wealth funds.
Financials
- $1 billion – Total investment made by Norway's sovereign wealth fund in real estate portfolios.
- £570 million ($740.03 million) – Amount invested in a 25% interest in the London real estate portfolio.
- €240 million ($261.02 million) – Amount invested in a 40% interest in AXA Lifestyle Housing.
- £2.66 billion – Valuation of the London property portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management | Investor | Company | Manages Norway's sovereign wealth fund and has made the real estate investments. |
| Shaftesbury Capital | Co-Owner/Partner | Company | Partnered with NBIM in a joint venture for the London real estate portfolio, retaining a 75% stake. |
| AXA Lifestyle Housing | Co-Owner/Partner | Company | Operates student housing and co-living properties in France and Spain, retaining a 60% stake in the portfolio. |