Key Takeaways
- • Norges Bank Investment Management committed $500M to Asana Partners Strategic Partners I (APSP I), a joint vehicle with Charlotte-based Asana Partners to acquire neighborhood retail assets across the U.S.
- • The partnership begins with a 50% stake in a portfolio of grocery-anchored retail centers, with the mandate extending to unanchored centers, street retail and mixed-use assets.
- • Asana, which manages more than $9B in AUM and a 10.3M SF portfolio across 25 cities, announced the vehicle on Tuesday; the properties involved were not disclosed.
- • The deal is at least Norges' second U.S. retail bet this year and fits a December strategic plan to put up to 7% of its capital into global real estate, with 30% to 70% of its portfolio allocated to North America.
- • Norges' move follows a November letter to the Norwegian government acknowledging that its real estate had underperformed its equity and bond holdings.
Summary
Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global with roughly $2.2T in assets, has invested $500M with Asana Partners to acquire high-quality neighborhood retail assets in the United States, according to Bisnow, which reported the Charlotte-based firm's Tuesday announcement. The vehicle, Asana Partners Strategic Partners I (APSP I), will initially hold a 50% stake in a portfolio of grocery-anchored retail centers and will also target unanchored centers, street retail and mixed-use assets. Asana partner Reed Kracke said the partnership "reflects our shared conviction in the strength and resilience of neighborhood retail real estate."
Asana and Norges did not disclose the specific properties and declined to provide further details. Asana, which has more than $9B in AUM, operates a portfolio spanning 10.3M SF in 25 cities according to its website. The APSP I partnership runs alongside Asana's existing Asana Partners Select Fund. Separately, Asana has acquired at least two assets this year, including a $151M shopping center in Huntington Beach, California, in February, and a deal in the same month for The Arboretum, a 197K SF retail center in Austin.
The investment is part of a broader repositioning of Norges' real estate program. In December, the fund said it would invest up to 7% of its capital in global real estate, focusing on platforms and funds, and target a diversified portfolio with 30% to 70% allocated to North America. The three-year plan follows a November letter to the Norwegian government in which Norges acknowledged that its real estate holdings had underperformed its equity and bond investments.
Norges has already built exposure to grocery-anchored retail. Last month, it joined TPG, PSP Investments, La Caisse and others in acquiring Echo Realty and its 230 retail centers across the Midwest and Southeast in a deal valued at around $2B. The appetite for necessity-based real estate is broader across institutional capital, illustrated by a $1.6B fund launched in December by Bain Capital Real Estate and 11North.
Asana and Norges did not disclose the specific properties and declined to provide further details. Asana, which has more than $9B in AUM, operates a portfolio spanning 10.3M SF in 25 cities according to its website. The APSP I partnership runs alongside Asana's existing Asana Partners Select Fund. Separately, Asana has acquired at least two assets this year, including a $151M shopping center in Huntington Beach, California, in February, and a deal in the same month for The Arboretum, a 197K SF retail center in Austin.
The investment is part of a broader repositioning of Norges' real estate program. In December, the fund said it would invest up to 7% of its capital in global real estate, focusing on platforms and funds, and target a diversified portfolio with 30% to 70% allocated to North America. The three-year plan follows a November letter to the Norwegian government in which Norges acknowledged that its real estate holdings had underperformed its equity and bond investments.
Norges has already built exposure to grocery-anchored retail. Last month, it joined TPG, PSP Investments, La Caisse and others in acquiring Echo Realty and its 230 retail centers across the Midwest and Southeast in a deal valued at around $2B. The appetite for necessity-based real estate is broader across institutional capital, illustrated by a $1.6B fund launched in December by Bain Capital Real Estate and 11North.
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