• VoltAir and 86 Boulevard Haussmann are the two properties under investment
• Norges Bank Investment Management will pay 297 million euros for its 65 percent stake in VoltAir, which is valued at 457 million euros.
• It will pay 141 million euros for its 65 percent ownership stake in 86 Boulevard Haussmann, which is valued at 217 million euros.

Norges Bank Investment Management has agreed to purchase a 65 percent stake in two properties in Berlin and Paris.

VoltAir and 86 Boulevard Haussmann are the two properties under investment. VoltAir is a newly constructed mixed-use property in Berlin, and 86 Boulevard Haussmann is an office building in central Paris. Both investments will be made in collaboration with Swiss Life Group.

Investment has been made in line to manage funds under the Sovereign Pension funds of Norway. The Norwegian Parliament and the Ministry of Finance established rules for the fund’s management and delegated responsibility for its administration to Norges Bank. According to the law the funds have to be prudently managed, invested and utilised.  Norwegian government can only spend a small portion of the fund, up to a maximum of 20% of the government budget.

Norges Bank Investment Management will  pay 297 million euros for its 65 percent stake in VoltAir, which is valued at 457 million euros. It will pay 141 million euros for its 65 percent ownership stake in 86 Boulevard Haussmann, which is valued at 217 million euros.

The fund owns hundreds of rental properties in some of the world’s most important cities. The fund also receives consistent income from lending to countries and businesses.

Both assets will be debt-free, and no financing will be used in the transaction. Swiss Life Group entities will own 35% of the properties, with asset management handled by Swiss Life Asset Managers.

The fund is now one of the world’s largest, holding nearly 1.5 percent of all shares in publicly traded companies worldwide. It owns approximately 9,000 companies worldwide, entitling it to a portion of their profits in the investee company.

Staff Galactik Views