Norway Reshuffles SWF Real Estate Leadership

Karsten Kallevig is to become CEO of the property subsidiary of Norway’s giant sovereign fund.

083  Karsten KallevigKarsten Kallevig, NBIMNorway’s sovereign wealth fund has promoted Karsten Kallevig to lead its real estate subsidiary.

Kallevig, currently chief investment officer for real estate, will become CEO of Norges Bank Real Estate Management from January 1.

Norges Bank Investment Management (NBIM), which manages the $838 billion portfolio, recently applied to the country’s government for permission to double its target allocation to real estate from 5% to 10% of the fund. At the end of June 2015 the fund had 2.7% invested in the asset class.

Yngve Slyngstad, CEO of NBIM, described Kallevig’s new role as a “big challenge”.

For more stories like this, sign up for the CIO Alert daily newsletter.

“The fund expects to invest around 50 billion kroner [$5.7 billion] in real estate every year going forward,” Slyngstad said. “Kallevig has the background and experience to lead this organisation.”

Kallevig joined the sovereign wealth fund in 2010 to lead its first investments into real estate. In April 2011 he was appointed CIO for the asset class. Kallevig was also named in CIO’s Power 100 in 2013 and 2014.

NBIM established Norges Bank Real Estate Management in July 2014 to manage its direct property investments. The fund has so far purchased commercial and residential assets in major cities including New York, London, San Francisco, and Munich.

In October, NBIM opened an office in Tokyo to expand its real estate capabilities into Asia.

Related: How Norway’s SWF Plans to Benchmark Real Assets & Norway SWF Sets Out Case for Real Estate Expansion