In a strategic move reflecting strong confidence in the future of central London, Norges Bank Investment Management, which oversees Norway’s sovereign wealth fund, has secured a £570 million deal to acquire a 25% non-controlling stake in the iconic Covent Garden estate. The £2.7 billion transaction with Shaftesbury Capital marks a significant investment in the UK capital’s renowned retail, leisure, and cultural district.
Known for its lively atmosphere and cultural richness, Covent Garden continues to be one of London’s most desirable destinations for both locals and tourists. Following the sale, Shaftesbury Capital, the UK-listed landlord, will retain management of the estate, ensuring stability for investors and tenants alike.
This acquisition aligns with Norges Bank’s long-term strategy of investing in high-quality assets in prime locations. Jayesh Patel, head of UK real estate at Norges, noted that the deal complements the fund’s existing portfolio of West End properties, reinforcing their belief in London’s ongoing appeal and resilience.
The investment follows a similar £300 million stake in the Duke of Westminster’s Grosvenor estate, further emphasizing the Norwegian fund’s commitment to strategic investments in London’s dynamic real estate market, particularly in sectors such as retail and leisure that are poised for strong post-pandemic recovery.
via FT