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%).