Europe

Norges fund cuts UK values

Norway’s £682bn Global Government Pension Fund, the biggest sovereign wealth fund in the world, has cut the value of its UK property portfolio by 5% after Britain voted to leave the EU.

Norway’s £682bn Global Government Pension Fund, the biggest sovereign wealth fund in the world, has cut the value of its UK property portfolio by 5% after Britain voted to leave the EU.

Norges Bank Investment Management’s second quarter report for the fund stated that its external valuers had not adjusted values to take into account of the possible effects of Brexit.

It said: “The valuation of the UK real estate portfolio is therefore subject to greater uncertainty than usual. The increased volatility and uncertainty in the market are assumed to have a negative effect on property values.”

The value of the fund’s £15.6bn unlisted real estate holdings fell by 1.6% in the second quarter.

Among its UK real estate portfolio are several Regent Street properties, which it owns in a partnership with the Crown Estate.

In July the fund bought Sedley Place, an office and retail block at 355-361 Oxford Street, W1, from Aberdeen Asset Management for £124m.

The fund’s assets at the end of the second quarter comprised stocks (59.6%), bonds (37.4%) and real estate (3.1%).

Other News

C&W predicts jump in European investment

Investment into European property will rebound with 6.3% growth in volumes in 2017 despite rising inflation and political volatility, forecasts from Cushman & Wakefield’s 2017… Read more »

E Europe

2016 global top 100 real estate owners

Only the US, China, Japan and Germany have GDPs larger than the total assets held by Estates Gazette Global’s top 100 real estate owners. This… Read more »

E Europe

Centres of excellence

The top 100 richest cities in the world account for around one-third of global GDP. To access 25% of available global output, you would need… Read more »

E Europe