Norway Wealth Fund Joins Axa Unit to Purchase Munich’s SZ TowerNeil Callanan
The manager of Norway’s sovereign-wealth fund, the world’s largest, and a unit of Axa Real Estate Investment Managers plan to buy Munich’s SZ Tower.
A Norges Bank Investment Management unit and Axa Real Estate will “indirectly acquire joint control” of the 28-story building, according to a filing to the European Union’s executive arm yesterday. The property includes three lower levels, an underground garage and a six-floor campus.
Prime Office REIT-AG agreed to sell the building for 164.1 million euros ($220 million), the Munich-based company said today in a statement. Prime Office didn’t identify the buyers of the building, which is currently the headquarters of publishing company Sueddeutscher Verlag.
Norway’s $808 billion sovereign-wealth fund is seeking to increase the proportion of its holdings in real estate to about 5 percent. It’s bought stakes in European warehouses, the Times Square Tower in New York and the Meadowhall Centre in northern England in just over a year. It formed a venture with Axa Real Estate, an affiliate of Europe’s second-largest insurer, to provide commercial-property debt last month.
Norges Bank spokesman Thomas Sevang confirmed the contents of the EU filing.