Norway's $1-trillion sovereign wealth fund has made its first real estate investment in Asia by acquiring a 70-percent stake in five properties in Tokyo.
The fund will pay 92.75 billion yen ($823.20 million) for its stake, valuing the portfolio at 132.5 billion yen, while partner Tokyu Land Corporation will acquire the remaining 30 percent, the fund said in a statement.
Three of the properties are located in the shopping district of Shibuya while the two others are located in the upscale district of Omotesando.
The fund invests the revenues from Norway's oil and gas production in stocks, bonds and unlisted real estate abroad. At the end of the third quarter, unlisted property accounted for 2.7 percent of the overall value of the fund.
The agreement is scheduled to be completed at the end of December. The venture plans to finance 49 percent of the acquisition with a bank loan.