London overtook New York as the biggest real estate exposure for Norway’s $1 trillion wealth fund.
The fund held 22.8 percent of its real estate portfolio in London, followed by 21.5 percent in New York and 19.1 percent in Paris at the end of 2017, according to a report released in Oslo. At the end of 2016, New York was on top with 19.2 percent, followed by London at 17 percent and Paris at 13.1 percent.
The fund, which targets a limited number of global cities as well as logistic properties, had 218.6 billion kroner ($28 billion) invested in unlisted real estate at the end of 2017. The portfolio returned 7.5 percent last year.
It made three new investments in London last year along with its main U.K. partner, the Crown Estate, but its biggest investments in Europe were in Paris and Berlin. It made one investment in New York and two in Washington D.C.
“Central London office investment transactions rose 30 percent in 2017 despite economic uncertainty,” the fund said. “Transaction volumes ended at around 15 billion pounds, which was a return to the average level seen in the five years prior to the Brexit vote.”