Norges Bank Investment Management Invests in Paris Property

Deal News | Dec 20, 2024 | Norges Bank Investment Management (NBIM)

Norges Bank Investment Management (NBIM), the fund management division of Norges Bank, has announced a significant investment in the Parisian real estate sector. NBIM has entered into an agreement to acquire an 80 percent ownership stake in a 50,000 square meter office property in Paris. The deal was struck for 347.4 million euros, which assigns the property a gross valuation of 447.5 million euros. Unibail-Rodamco-Westfield, the seller, will retain a 20 percent stake and continue to provide asset and property management services. This transaction is notable as it will be carried out without any financing, suggesting a strategic cash deployment by NBIM. Completion of the transaction is expected in the first quarter of 2025. NBIM's direct investments in real estate and renewable energy infrastructure are managed through subsidiary structures established by Norges Bank.

Sectors

Real Estate
Investment Management

Geography

France – The property involved in the transaction is located in Paris, France.

Industry

Real Estate – The investment involves the acquisition of office space, a key sector within real estate.
Investment Management – Norges Bank Investment Management is involved as the acquiring fund management body, focusing on managing large-scale investments.

Financials

347.4 million euros – Amount paid by NBIM for the 80 percent ownership interest in the property.
447.5 million euros – Gross value of the entire property as per the transaction.

Participants

Name	Role	Type	Description
Norges Bank Investment Management	Buyer	Company	Fund management division of Norges Bank focusing on unlisted real estate and renewable energy.
Unibail-Rodamco-Westfield	Seller	Company	The current owner of the property, retaining a minority interest post-transaction.
Norges Bank	Supporting Entity	Company	The parent entity of Norges Bank Investment Management.