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

podcast

Tax, ‘toppiness’ and the non-existent Trump bump. Just what is happening in the US real estate market?

Whatever you might think of the US’s new president, many expected Donald Trump’s election to boost business and US growth in general. CBRE’s head of… Read more »

E Europe

Innovation is the catalyst for change

Having a voice is one thing. Making sure it is heard is an altogether trickier business, even if you are a world-renowned architect responsible for… Read more »

E Europe

Smart cities need intelligent infrastructure

Cities are under a lot of pressure. Once upon a time it was perfectly acceptable for global metropolises and the buildings they comprised to stand… Read more »

E Europe