Norges Bank Investment Management, the sovereign wealth fund of Norway, has acquired a 45% stake in a planned 900,000-square-foot office tower located at 343 Madison Ave in Manhattan. The joint venture between Norges Bank and Boston Properties will develop the project near Grand Central Terminal. According to Bloomberg’s report, this acquisition is part of NBIM’s strategy to invest its billions of dollars in dry powder into various real estate assets such as offices and logistics.
The joint venture has signed a long-term ground lease with the Metropolitan Transportation Authority for the site and intends to construct an additional entrance for the rail terminal. While final plans for development have not been confirmed yet, NBIM’s head of US unlisted real estate investments John McCarthy stated that there is ample capital available and many investors are looking to capitalize on current market disruptions. This will allow New York City to navigate through these challenges more efficiently.
The post titled “Norway Forms JV With Boston Properties on Midtown Office Tower” originally appeared on Connect CRE but any mention or reference to “Connect,” “Connect LA,” or “Connect Texas” has been omitted from this rewritten version.
