Norway’s $1 trillion sovereign wealth fund, the Government Pension Fund Global, is making changes to its real estate investment plans, changing its target allocation to real estate from 7 percent to a range of 3 percent to 5 percent. Currently, the sovereign wealth fund has an actual allocation to private real estate of 3 percent and its listed and unlisted real estate portfolio represents 4 percent of the total fund.

“We would like to emphasize that real estate will continue to be an important part of the bank’s investment strategy for the GPFG, and the fund will be a major player in the real estate markets in the years to come,” said Egil Matsen, deputy governor of Norges Bank, which invests on behalf of the Government Pension Fund Global, in a statement in February.

In addition to a smaller target allocation, the new real estate strategy will focus on both unlisted and listed real estate, with broad diversification and a focus on cost efficiency. Norges Bank