Norges Bank Investment Management has agreed to acquire a 92% stake in a portfolio of shopping centers in Spain from Sociedad General Inmobiliaria de Espana for 1.4 billion euros ($1.6 billion.)
A subsidiary of Portuguese real estate company Sonae Sierra will acquire the remaining 8% as part of a joint venture with Norges Bank. Sonae Sierra will oversee asset management for the portfolio, which has a gross value of approximately 1.5 billion euros and approximately 258,000 square meters of retail space.
The deal is expected to close in the fourth quarter.
“This transaction grows our retail real estate exposure in Europe and aligns with our strategy of investing alongside specialist operators,” Jayesh Patel, co-head of European real estate at Norges Bank Investment Management, said in a statement.
It is the second time in two months the manager of Norway’s $2.4 trillion Government Pension Fund Global has announced investments in shopping centers – and only the third time ever.
In July, the GPFG announced that it had committed $500 million for a 49% stake in a strategic partnership with Asana Partners to invest in and operate high-quality retail assets in the U.S. The partnership will invest in open-air shopping centers and street retailers, as well as in one or more joint ventures, each with a limited partner.
Its first investment was in 2012 when it paid 348 million pounds ($557 million at the time) for a 50% stake in Meadowhall Shopping Centre in Sheffield, England. As part of the deal, it acquired the remaining 50% for 360 million pounds in 2024.
The GPFG began investing in real estate in 2011.
Tags: Norges Bank Invesment Management, Real Estate, shopping centers