Norwegian Sovereign Wealth Fund Cuts Exposure to Spanish Real Estate to Historic Lows

At the end of 2025, Norges Bank Investment Management, the vehicle managing Europe’s largest sovereign wealth fund, drastically reduced its holdings in Spanish listed real estate companies. Currently, the fund only holds stakes in:

• * Merlin Properties: 1.45%
• * Inmobiliaria Colonial: 1.45%
• * Aedas Homes: 1.23%

This reflects the declining weight of Spanish real estate in the fund’s portfolio, down from over 10% in 2020 to just 6.6% today, despite the long-running real estate boom and strong stock performance of socimis and developers.

Norges maintains its main bet on Merlin, even though its stake dropped from 1.78% last year to 1.45%. Led by Ismael Clemente, Merlin has seen a 20% stock increase this year, driven by its aggressive data center strategy, with 44 MW in operation across Madrid, Barcelona, and the Basque Country, generating €31 million in rental income in 2025.

For Inmobiliaria Colonial, Norges’ stake remains almost unchanged at 1.45%. The 2025 results were well received on the stock market, with shares climbing 3.3% after a flat start to the year.

The key development in 2025 is Norges’ entry into Aedas Homes, holding 1.23%, pending the results of Neinor’s public takeover offer, which will create Spain’s largest developer group. Neinor has exited Norges’ portfolio, where it held 0.33% at the end of 2024.

The total market value of these three real estate holdings is €192 million, modest compared to a sector that continues to gain weight in the Spanish stock market.

Paradoxically, Norges’ ‘Strategy 2028’ outlines plans to increase exposure to real estate assets, highlighting Spain and Italy as key markets. The fund aims to invest 3%-7% in the sector, with allocations across office, retail, logistics, and residential assets, and a geographic spread of 30%-70% in North America, 20%-60% in Europe, and 0%-15% in Asia-Pacific.