London: London overtook New York as the biggest real estate exposure for Norway’s $1 trillion (Dh3.67 trillion) wealth fund.
The fund held 22.8 per cent of its real estate portfolio in London, followed by 21.5 per cent in New York and 19.1 per cent in Paris at the end of 2017, according to a report released in Oslo. At the end of 2016, New York was on top with 19.2 per cent, followed by London at 17 per cent and Paris at 13.1 per cent.
The fund, which targets a limited number of global cities as well as logistic properties, had 218.6 billion kroner ($28 billion) invested in unlisted real estate at the end of 2017. The portfolio returned 7.5 per cent last year.
It made three new investments in London last year along with its main UK partner, the Crown Estate, but its biggest investments in Europe were in Paris and Berlin. It made one investment in New York and two in Washington DC.
“Central London office investment transactions rose 30 per cent in 2017 despite economic uncertainty,” the fund said. “Transaction volumes ended at around £15 billion, which was a return to the average level seen in the five years before the Brexit vote.”
