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Norway's $1 Trillion Fund Scales Back Global Real Estate Push

  • Wealth fund sets new, lower target for real estate at 3-5%
  • Norway fund has no plans to sell its $25 billion in property
Pedestrians pass the entrance to Norway's central bank, also known as Norges Bank, in Oslo on Feb. 13, 2014.

Pedestrians pass the entrance to Norway's central bank, also known as Norges Bank, in Oslo on Feb. 13, 2014.

Photographer: Kristian Helgesen/Bloomberg

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After this decade snapping up $25 billion of some of the world’s toniest properties in London, New York, Paris and other global cities, Norway’s $1 trillion wealth fund is scaling back its appetite for real estate deals.

The fund will instead focus more on investing in listed real estate companies, as a way of cutting costs and simplifying its approach after struggling to find properties to buy amid near record prices. It lowered its target for real estate in its portfolio to 3 to 5 percent from 7 percent, meaning its build up has now essentially come to an end.