Norway’s Oil Fund Buys Into Boston Property

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Norway’s Oil Fund Buys Into Boston Property


Category: Business News

Norway’s sovereign-wealth fund said Monday it had acquired a 47.5% stake in an office property at One Beacon Street in Boston, in a joint venture with U.S. life insurer  MetLife Inc.

Norges Bank Investment Management, which manages Norway’s $891 billion fund, usually referred to as the “oil fund,” said it had paid $122.3 million for the stake, and said the property was valued at $561.5 million. The transaction included $304 million of existing debt, NBIM said.

The 1 million-square-feet property consists of nearly 100% office space, with a small retail component housing a bank and a lunchtime diner, NBIM said, adding that MetLife will manage the property.

The joint-venture between NBIM and MetLife, established last year, has previously agreed to similar deals, including the One Financial Center in Boston as well as properties in Washington, D.C., and San Francisco. The NBIM-MetLife joint venture is set up to invest in Class A properties in key U.S. real-estate markets.

Source: The Wall Street Journal