In May this year despite its enormous resources Norway's sovereign wealth fund complained of not being able to source attractive property investments in Asia.
Sitting on a cash pile in excess of $1 trillion, the world's largest sovereign wealth fund managed by Norges Bank Investment Management (Norges), struggled to enter the Asian real estate market.
The wait is over now however with Norges signing an agreement to acquire a 70 percent interest in five properties in Tokyo, Japan, in a joint venture with a new partner, Tokyu Land Corporation. The properties are located in Shibuya, the affluent area of Minami-Aoyama and the high end retail district of Omotesando.
Norges will pay 92.75 billion Japanese yen for its 70 percent interest in the assets, valuing the portfolio at 132.5 billion yen. Tokyu Land Corporation will acquire the remaining 30 percent interest and manage the properties on behalf of the joint venture.
