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Norway’S $33 Billion Man Steps Up Search In Asia Real Estate Bet

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http://www.bloomberg.com/news/2014-05-21/norway-s-33-billion-man-steps-up-search-in-asia-real-estate-bet.html

Karsten Kallevig, the head of real estate at the world’s biggest sovereign wealth fund, has at least $33 billion to spend.

After getting the green-light in 2010 to expand into the property market, Norway’s $860 billion wealth fund has bought real estate in places such as Times Square and the Champs Elysees. It now has a strategy to focus on 10 to 15 cities globally and its efforts to enter Asia are about to intensify, Kallevig said.

“There should be a significant increase in pace just based on that,” the 39-year-old said in an interview at the wealth fund’s headquarters in Oslo on May 20.

For Kallevig, who joined the investor in 2010 from Grove International Partners, one of the biggest challenges will be to keep up pace with growth in the fund as he tries to fill a 5 percent allocation target for real estate assets. The property portfolio now stands at $10 billion, or 1.2 percent of the total. That may grow to more than $61 billion by 2020, based on government estimates if the 5 percent goal is met.

I wonder how much they've got invested in London, a near solid 20% return to be had there....

Property is the source of all wealth.

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http://www.bloomberg.com/news/2014-05-21/norway-s-33-billion-man-steps-up-search-in-asia-real-estate-bet.html

I wonder how much they've got invested in London, a near solid 20% return to be had there....

Property is the source of all wealth.

I think it is more a case that income from all assets has been pushed down so much, by low interest rates, that even the low rental yields that cash buyers of property can get look attractive.

Here I think it is just more of a case of diversifying the fund and note that they are buying commercial property. With only 5% in property I'm sure they would be ok with a crash!

Edited by renting til I die

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Oh to have a government with a trillion in assets.

I take it this is their oil wealth?

Makes you wonder where ours went doesn't it?

We spunked it on Foreign Aid, weapons, Benefits and playing the White Man

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