Wednesday 17 August 2016 11:41 am

Norway’s sovereign wealth fund cuts the value of its UK property portfolio due to the Brexit vote

Norway's sovereign wealth fund – the largest in the world – has cut five per cent off the value of its UK real estate portfolio due to the Brexit vote.

Trond Grande, deputy chief executive of the 8,177bn kroner (£668bn) fund, said at a press conference in Oslo: "It's an extraordinary measure.

"It was pointed out to us that the uncertainty of the assessment of the value of [our British property portfolio] by external assessors has increased.

"Due to the increased uncertainty, it was decided to decrease the value of the property portfolio by five per cent in relation to the value our external assessors gave us."

Read more: Commercial and City property prices crumble after the Brexit vote

"We at least have no indication that it should be adjusted further down."

In the second quarter, the fund lost 1.6 per cent on its $20.4bn unlisted real estate holdings, though the overall value of the fund increased by 1.3 per cent.

The fund owns large chunks of real estate in the UK, such as properties along London's Regent Street, owned in partnership with the Crown Estate. In July, the fund bought a mixed-use office and retail block on Oxford Street in London.

Grande said 23 per cent of its property investments are in the UK, with 16 per cent in the capital.