According to the wealth fund of the country, the total amount of the investment is $823.20 million or 92.75 billion in Yen value which rated the whole portfolio to 132.5 billion Yen. Tokyu Land Corporation will also secure and obtain the residual 30 percent. These properties will be located in both the shopping district of Shibuya and in the upscale district of Omotesando.
The funds were generated from the oil and gas production of Norway and will be further invested in stocks, bonds and unlisted real estate overseas. The said unlisted property accounted for 2.7% of the general rate of the account in the recent end of the third quarter.
“I’m certainly hoping there will be more deals. Tokyo will be one of our focus cities. In that lies an expectation or hope that will grow our presence there.” Head of the fund’s property business Karsten Kallevig told reports.
The fund did show its interest to officially have its first investment in real estate in Asia, stressing Tokyo and Singapore as their binary aims for investments. However, the country has paused as it felt the properties on proposal were not at the veracious rate.
An Oil Reserve in Hundvåg, Norway
The settlement was contracted last Dec. 7 and is arranged to be accomplished at the close of December. The undertaking plans to finance 49 percent of the procurement with a bank credit, the fund stated.
“We will try to be as disciplined in Tokyo as we have been elsewhere. We should only invest if we are convinced it is a good investment according to our strategy, good for the fund in the long time, not being caught doing deals for the sake of doing deals,” Mr Kallevig added.
Kallevig also told reports that it had trouble going into Asian districts because of the obvious distance between the two regions which were evidently extensive. It gave the country restrictions to further use Tokyo or Singapore as their regional hubs.
“Tokyo is the world’s largest metropolitan area. It’s a natural place to start. You have to debate scale, the practicalities — do you have an office — for other cities,” Kallevig expressed.
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