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Norway’s sovereign wealth fund, which today announced its second real-estate purchase, will add to its investments in Paris and London and has started to look for targets in Germany’s largest cities.

“We’re not done with London and Paris,” Karsten Kallevig, head of real estate at Norges Bank Investment Management, which oversees the fund, said in an interview in the French capital.

The Government Pension Fund Global today said it agreed to invest 702 million euros ($1 billion) to form a venture with Axa Real Estate, part of the Paris-based insurance company, to own 156,000 square meters (1.68 million square feet) of mainly office properties in Paris. The fund’s other purchase was a 452 million-pound ($723 million) deal for 25 percent of the London Regent Street shopping area.

The Oslo-based fund, built from Norway’s oil and gas wealth, last year won approval to put 5 percent of its capital of $570 billion in real estate, shifting some bond holdings to achieve a 4 percent annual return target.

“Eventually we are going to have to spread out” from France, the U.K. and Germany, Kallevig said. “Right now, it’s a blanket ‘no’.”

The Paris properties, in which the fund will own a 50 percent stake, include 12-14 on Rond Point des Champs-Elysees, Opus 12 in La Defense as well as the Meudon Campus.

A sovereign wealth fund is a state-owned fund with assets such as stocks, bonds and real estate.

To contact the reporters on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net; Gregory Viscusi in Paris at gviscusi@bloomberg.net.

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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Karsten Kallevig

Chris Ratcliffe/Bloomberg

Karsten Kallevig, head of real estate team for Norges Bank Investment Management.

Karsten Kallevig, head of real estate team for Norges Bank Investment Management. Photographer: Chris Ratcliffe/Bloomberg