Norges Bank Investment Management Expands U.S. Office Portfolio with Strategic Acquisition
Deal News | Dec 23, 2024 | Norges Bank Investment Management (NBIM)
Norges Bank Investment Management (NBIM) has significantly strengthened its U.S. real estate portfolio by acquiring full ownership of eight office properties across Boston, San Francisco, and Washington, D.C. The acquisition, amounting to a 50.1% interest, was completed for $976.8 million, thereby valuing the entire portfolio at $1.949 billion. The properties cover nearly 3.7 million square feet, positioning NBIM for potential growth in well-situated urban office spaces despite prevailing market uncertainties. Key properties include 501 Boylston Street and 33 Arch Street in Boston, Foundry Square 2 and 888 Brannan Street in San Francisco, and four prestigious buildings in Washington, D.C. The sellers are subsidiaries of TIAA, with Nuveen Real Estate, also a TIAA subsidiary and long-term NBIM partner, managing the assets. This acquisition reflects NBIM's confidence in the long-term value of high-quality office buildings despite the current market dislocation.
Sectors
- Real Estate Investment
- Finance
Geography
- United States – The acquisition involves properties located in Boston, San Francisco, and Washington, D.C.
- Norway – NBIM, the investing firm, is the fund management division of Norges Bank, which is based in Norway.
Industry
- Real Estate Investment – The article discusses an acquisition of significant office properties, highlighting investment strategies in real estate.
- Finance – This involves a large capital transaction which is significant in corporate finance and investment sectors.
Financials
- 976.8 million dollars – The purchase price paid by NBIM for a 50.1 percent interest in the portfolio.
- 1,949.7 million dollars – The total valuation of the entire portfolio of properties.
- 194.9 million dollars – Existing debt encumbered on 501 Boylston Street.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management | Buyer | Company | NBIM is the investment division of Norges Bank, specializing in managing Norway's pension fund assets. |
| TIAA | Seller | Company | A major financial services organization whose subsidiaries owned the properties. |
| Nuveen Real Estate | Asset Manager | Company | A subsidiary of TIAA acting as representative for the sellers and continues as the manager of these properties. |
| Per Loken | Spokesperson | People | Global Co-Head of Unlisted Real Estate at NBIM, commenting on the acquisition. |