Norges Bank Investment Management (NBIM), responsible for the investments of the Government Pension Fund Global, has acquired an additional 50.1 per cent interest in eight office properties in the USA.

The properties are located in Boston at 501 Boylston Street and 33 Arch Street; in San Francisco at Foundry Square 2 (405 Howard Street) and 888 Brannan Street; and in Washington, D.C., at 800 17th Street, Evening Star (1101 Pennsylvania Avenue), Franklin Square (1300 I Street), and 25 Massachusetts Avenue.

The agreement was signed on 20 December and the transaction was completed the same day.

NBIM paid USD 976.8m for its 50.1 per cent interest in the assets, valuing the portfolio at USD 1,949.7m. With this acquisition, the fund will hold a 100 per cent ownership interest in the assets.

In addition to this, 501 Boylston Street in Boston is encumbered by USD 194.9m of existing debt.

Commenting on the acquisition, NBIM global co-head unlisted real estate, Per Løken, said: "In a period of heightened dislocation in the office sector, we see this as an opportune moment to invest.

“By taking full ownership of nearly 3.7m square feet across Boston, San Francisco, and Washington, D.C., we're demonstrating our conviction that well-located, high-quality office buildings will continue to deliver long-term value.”

The sellers of the properties are subsidiaries of the Teachers Insurance Annuity Association (TIAA). Nuveen Real Estate, a subsidiary of TIAA and long-time partner of NBIM, acted as representative to the sellers and will manage the assets.

Løken said NBIM believed the continued relationship with Nuveen Real Estate would support the delivery of long-term value to the fund.

The eight properties comprise 3,655,922 square feet of office space.

NBIM also acquired an 80 per cent interest in a Paris office property in the same month.

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