(Bloomberg) -- Norway’s $1.7 trillion sovereign wealth fund paid $976.8 million to take full ownership of properties in three major US cities, doubling down on a view that prime office real estate remains a good bet in the longer term.
“In a period of heightened dislocation in the office sector, we see this as an opportune moment to invest,” Per Loken, the fund’s global co-head of unlisted real estate said in a statement Monday.
Norges Bank Investment Management, the official name of the fund, will buy the 50.1% held by various units of TIAA to take full ownership of the eight properties totaling about 3.7 million square feet. These include 501 Boylston Street and 33 Arch Street in Boston, 888 Brannan Street in San Francisco and 25 Massachusetts Avenue in Washington, D.C.
TIAA subsidiary Nuveen Real Estate represented the sellers and will continue to manage the assets.
The deal follows on the heels of a 347.4 million euro ($362 million) agreement announced Friday to buy 80% of Trinity Tower, an office property located in Paris.
(Corrects story to add missing million to the first paragraph)
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