The rise in long-term interest rates is welcome news for the real-estate arm of Norway's $1-trillion (R11.8-trillion) wealth fund. That's because it could trigger a move by investors into bonds and put more property assets on the market, according to Karsten Kallevig, CEO of Norges Bank Real Estate Management. "If people are forced to sell, then it would be very positive for us," he said in an interview in Oslo. "We'll get access to properties." The world's biggest wealth fund is in the process of building up a property portfolio that will eventually account for about 7% of its assets. It now holds 218.6 billion kroner (R336-billion) in real estate, or 2.6% of its assets, after snapping up properties in key global cities such as London, New York, Paris and Tokyo. The fund is invested for future generations of Norwegians, which often allows it to buy as markets are falling. Higher rates were not necessarily negative for the commercial real estate market, Kallevig said. "However, if r...
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