Norway’s huge sovereign wealth fund has overhauled its property investment strategy, revealing plans to reduce the amount of money it invests in the asset class and refocus on premier assets in big cities.

In a letter to Norway’s ministry of finance, Norges Bank Investment Management, the fund’s manager, said property would “continue to be an important part of the bank’s investment strategy” and that it expected to be “a large real estate investor in the coming years”. But the new strategy contains radical changes.