N
orway's $2 trillion sovereign wealth fund is set to invest over half a billion dollars in a prime New York City office building. The fund, managed by Norges Bank Investment Management (NBIM), will pay $542.6 million for a 95% stake in the property at 1177 Avenue of the Americas, also known as Sixth Avenue. A subsidiary of real estate investment firm Beacon Capital Partners will take a 5% stake and oversee asset management.

    The deal values the property at $571.1 million and is expected to be completed in the third quarter. The fund will buy the building from California State Teachers' Retirement System and Silverstein Properties, who currently own it under a joint venture. This investment marks the latest major real estate purchase by NBIM, which has a global portfolio spanning 15 countries with over $16 billion worth of property investments in the US.

    The sovereign wealth fund's real estate holdings already include several New York buildings, such as Times Square Tower and properties on Madison Avenue and Broadway. Its investments also span across other major cities in the US, including Boston, San Francisco, and Las Vegas. In recent months, NBIM has made significant real estate deals, including a $740 million investment in London's Covent Garden district and a 240 million euro purchase of a stake in AXA Lifestyle Housing, which operates student and co-living properties in Spain and France.

    The fund reported a 4% return on its unlisted real estate investments for the first half of the year.