AP2 buys into $1.8bn US office portfolio

The Second Swedish National Pension Fund has bought into a $1.8 billion portfolio of offices also owned by the National Pension Service of Korea, Tishman Speyer and the Government of Singapore Investment Corporation.

The Second Swedish National Pension Fund (AP2) has announced an investment of $325 million into a US office portfolio owned by South Korea’s National Pension Service (NPS) and an affiliate of US developer cum fund manager Tishman Speyer.

AP2’s investment buys it 41 percent of US Office Holdings, a company which directly owns three properties and is a joint owner of another property company called Prime Plus Investments, which jointly owns a further 12 properties alongside another large state investor, the Singapore sovereign wealth fund, Government of Singapore Investment Corporation.

In total, AP2 has gained exposure to 15 properties comprising approximately 893,000 square feet. About 70 percent of the portfolio are on the east and west coasts, in New York, San Francisco, Seattle and Beverly Hills and 20 percent is in Chicago. The total value of the portfiolio is about $1.8 billion.

AP2 said in its announcement: ““This investment enables us to invest in the American property market together with other long-term investors with extensive local knowledge and experience. Investing in the USA is also attractive since this is a mature and transparent market with potential for growth”

NPS and Tishman Speyer bought into the portfolio in April this year, paying approximately $900 million, $800 million of which came from the Korean state fund.