Norges Bank Investment Management has promoted Karsten Kallevig to chief executive officer of Norges Bank Real Estate Management, the investment arm of Norway’s sovereign wealth fund said Thursday.
Kallevig joined Norway’s sovereign wealth fund in 2010 as the global head of real estate asset strategies, then was made chief investment officer in 2011. Previously, the world’s biggest sovereign wealth fund did not have a separate chief executive officer for real estate and instead, Trond Grande, the fund’s deputy chief executive officer, led the real estate business.
The fund, which manages 7.3 trillion krone (€769 billion; $835 billion), plans to invest about 50 billion kroner annually in real estate, it said in the announcement. As of September 30, 3 percent of the fund was invested in real estate. Norges Bank Real Estate Management was created as a separate entity from the investment arm in July 2014.
“Real estate differs from the fund’s two other asset classes, equities and fixed income,” said Yngve Slyngstad, the chief executive officer of Norges Bank Investment Management, in a statement. “Kallevig has the background and experience to lead this organization.”
Kallevig starts in this new role on January 1. Prior to his tenure at Norges, Kallevig worked for Grove International Partners, most recently as its head of Japan.
The sovereign wealth fund has been expanding in real estate worldwide, acquiring properties in New York, Paris, London and Berlin. Last month, NBIM signed a 75-year contract to purchase a 44 percent stake in 11 Manhattan offices for $1.56 billion.
In November, Norges published a report saying it could triple its real estate allocation, from 5 percent of its portfolio up to 15 percent. The fund first widened its strategy outside Europe in 2013 to include the US.