has reported a 1.5% return on its real estate portfolio for the third quarter of this year.
Real estate investments amounted to 1.3% of the fund at the end of the quarter.
The fund鈥檚 real estate investments will gradually increase to as much as 5% of the value of the fund.
The fund said it aims to build a global but concentrated real estate portfolio and expects to invest 1% of the fund each of the next three years in private real estate.
Yngve Slyngstad, chief executive at NBIM, said: 鈥淥ur strategy is to invest in a limited number of cities around the world and concentrate on office and retail premises.鈥�
New properties were purchased in both the US and Europe in the quarter.
In July, the fund invested in the office building One Beacon Street in Boston, paying $122.3m (鈧�96.2m) for a 47.5% stake, and acquired 100% of the Le Madeleine building on Boulevard de la Madeleine in Paris for 鈧�425.6m.
In August, the fund purchased a 57.8% stake in the Pollen Estate, a portfolio of properties in London鈥檚 West End, for 拢343m (鈧�435m), as well as 50% of a in Madrid and Barcelona through its partnership with Prologis for 鈧�50m.
Last month, the fund acquired a 49.9% stake in the Orrick Building, an office building in San Francisco, for $139.7m, in addition to entering an agreement with Boston Properties on the purchase of a 45% interest in 601 Lexington Avenue in New York, 100 Federal Street in Boston and Atlantic Wharf Office Building in Boston for a total of $1.5bn.
Through its partnership with Prologis, the fund purchased 50% of a logistics property in Enfield in the UK for 拢55m.
, the fund bought a 94.9% stake in the shares of companies owning two office buildings in the Lenbach Ga虉rten quarter in Munich from AM Alpha for 鈧�176.1m, including 鈧�75m of third-party debt.
Overall, the fund produced a return of just 0.1%, or NOK15bn (鈧�1.8bn), in the third quarter of this year, with both equities and bonds underperforming their benchmarks.
