Norges Bank to purchase Paris property for €1b

The €828 billion ($865 billion) Norges Bank Real Estate Management, which manages property investment for the Norwegian Government Pension Fund Global, has invested €1 billion ($1.1 billion) in the Vendome Saint Honore, located at 9 Place Vendome and 368–374 rue Saint Honore in Paris' 1st arrondissement in Paris.

The sellers were Trajan Luxembourg Sarl and Trajan Luxembourg II Sarl.The property totals 288,000 square feet of office space and retail space.

“No financing was used in the acquisition and the asset will be held unencumbered by debt,” NBIM said in a statement. The agreement was signed and completed Dec. 16.

During second quarter 2016, Parisian office investment activity picked up, with volumes reading €3.9 billion ($4.1 billion), well over double the volumes during first quarter 2016, according to Cushman & Wakefield. There is healthy demand from local and overseas investors, and volumes are being boo