Norges Bank Investment Management (NBIM) is investing 438 million euros in majority shares in two large office and retail buildings located in the center of Paris and in Berlin, via a new joint venture with Swiss Life.
Swiss Life said an investment vehicle targeting core, primarily commercial, real estate assets in Berlin and Paris had been created for the two partners to invest in, which would be managed by Swiss Life Asset Managers.
A spokeswoman for NBIM, which manages the Norwegian government’s NOK 12 billion (€1.2 billion) pension fund, confirmed it was the first time it had invested with Swiss Life.
The parties said the partnership has so far signed two agreements, to buy VoltAir – a new mixed-use building located at Voltairstrasse 8-10 in Berlin – and 86 Boulevard Haussmann, an office building in central Paris. .
NBIM said it was buying a 65% stake in the two properties, with Swiss Life holding the rest.
Both agreements were signed yesterday, with completion expected in February 2023 for VoltAir and December 2022 for 86 Boulevard Haussmann, NBIM said.
The Oslo-based SWF manager said it would pay 297 million euros for its stake in VoltAir, valuing the property at 457 million euros, and 141 million euros for its stake in the Parisian asset, valuing this property at 217 million euros.
The sellers of VoltAir – which includes approximately 30,000 m² of office and retail space – are ABG Real Estate and Gaedeke & Sons, while the 11,000 m² Boulevard Haussman property is being sold to the new partnership by Swiss Life Assurance and Patrimoine, Swiss Life Providence and Health and Swiss Life Assurances de Biens, according to NBIM.
The Norwegian institutional investor said the two assets would not be debt-encumbered and no financing would be involved in the transaction.
Swiss Life Asset Management, which will manage the assets of both properties, said the Berlin and Paris assets were fully leased.
Stefan Mächler, Group CIO at Swiss Life, said: “We are delighted to partner with an experienced and financially sound institutional investor with a long-term investment horizon.”
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