Norway’s sovereign wealth fund has purchased a stake in a New York office building located near 11 assets in which the investor acquired an interest in 2015.
In its latest deal, Norges Bank Real Estate Management, the real estate platform of Norway's central bank that manages the Government Pension Fund Global, bought a 48 percent leasehold interest in 375 Hudson Street for $223 million from Trinity Church Wall Street, the investor said Monday.
Trinity Church Wall Street, the real estate arm of Trinity Wall Street Episcopal Church, bought the leasehold earlier this month from New York-based Tishman Speyer. Local media reported that Trinity Church already owned the property beneath the building.
The 18-story building’s 1.1 million square feet includes office and retail space. The property is anchored by advertising firm Saatchi & Saatchi, with amenities including a rooftop outdoor running track, parking garage and storage space.
In November 2015, the Norwegian sovereign wealth fund agreed to purchase a 44 percent stake in a 75-year ownership interest in 11 office buildings for $1.56 billion from Trinity, PERE previously reported. The properties are about 94 percent leased and all located in Hudson Square, a neighborhood of Manhattan’s Midtown South.
Like the 2016 deal, Houston-based private real estate firm Hines will operate 375 Hudson and will own a 1 percent stake in the building.
Norges’ last US acquisition was the July purchase of a pair of Washington, DC buildings, PERE previously reported. The investor teamed up with Oxford Properties Group, the real estate arm of Canadian pension OMERS, to buy two offices for $560 million.
Norges’ real estate investments returned 3.5 percent in the first half of the year ending June 30, according to its second-quarter report. The investor oversaw NKr199 billion ($25 billion; €21.4 billion) in real estate and NKr8 trillion overall as of June 30.