Norway’s Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund, has acquired a 25 per cent stake in London’s Covent Garden estate for £570 million (€680 million).
Currently managing nearly €184 trillion in assets and owning 1.5 per cent of globally listed companies, NBIM has just partnered with Shaftesbury Capital, the London district’s landlord, for the deal, which values the estate at €3.22 billion.
Covent Garden, a hip, thronging hub of shopping, dining, and culture, spans shops, offices, and residential spaces, with a quarter of its land set aside for the latter two. Famous for landmarks like Seven Dials and Neal’s Yard, it hosts brands such as Apple, Chanel, and newcomers like Diptyque and Charlotte Tilbury. The investment tags onto a significant surge in luxury retail demand, which has recently hit record levels over the past few years, according to UK Sotheby’s International Realty.
Norwegian sovereign fund invests in key retail hub
Historically, Covent Garden was a fruit and vegetable market following London’s 1666 fire, but now it anchors the West End and opera scene, though it lost nearly a quarter of its value during the COVID-19 pandemic.
Recovery has since fuelled Shaftesbury’s growth in the prime property market. NBIM’s Jayesh Patel, head of UK real estate, called Covent Garden a ‘world-renowned retail, leisure, and cultural destination,’ which complements the fund’s West End holdings.
This follows NBIM’s January acquisition of a £307.5 million stake in Mayfair’s Grosvenor portfolio and its ownership in Regent Street with the Crown Estate. With only 7 per cent of its portfolio in property, NBIM continues leveraging low prime property prices. Shaftesbury’s shares rose 7.5 per cent by 11.30am GMT after the announcement.
