24 Dec 2012

Oil fund allowed to buy more real estate

7:54 am on 24 December 2012

Norway could use its sovereign wealth fund to buy real estate outside Europe next year.

"By spreading our investments we contribute to a continued secure and long-term management of the fund," said Finance Minister Sigbjoern Johnsen in a statement on Sunday.

The fund, which invests Norway's oil wealth for the benefit of future generations, previously raised its real estate allocation to 5%, but is able to buy property only in Europe. Now it is to expand beyond Europe.

AAP reports that at the end of September, real estate accounted for 0.3% of the total assets which are worth 3723 billion kronor.