Prime Highlights: 

Norway’s Sovereign Wealth Fund invests £570 million ($739 million) for a 25% stake in Covent Garden property portfolio. 

Total portfolio valued at £2.7 billion, spanning 1.5 million square feet of retail and leisure properties in Covent Garden and Seven Dials. 

Key Background: 

Norway’s $1.8 trillion sovereign wealth fund, the world’s largest, announced on Thursday that it had acquired a 25% stake in a prestigious London property portfolio located in the iconic Covent Garden. The deal, valued at £570 million ($739 million), was made through Norges Bank Investment Management (NBIM), which will partner with Shaftesbury Capital in the joint venture. 

The entire property portfolio, which spans 1.5 million square feet and includes retail and leisure properties in Covent Garden and Seven Dials, is valued at £2.7 billion. This latest acquisition reflects the sovereign wealth fund’s continued confidence in the strength of London’s real estate market. 

Jayesh Patel, head of U.K. real estate at NBIM, highlighted the strategic value of the investment, noting that the portfolio complements their existing high-quality holdings in the West End. The announcement positively impacted Shaftesbury Capital’s stock, which saw a nearly 16% increase upon market opening, before stabilizing with a 8.9% rise by late morning. 

This move follows the Norwegian fund’s £306 million investment in January, securing a 25% stake in the Grosvenor estate, a notable property in London’s Mayfair district. With these two transactions, NBIM has invested a total of £876 million in London real estate this year alone. In addition to the London property deal, NBIM also disclosed a €240 million investment in AXA Lifestyle Housing, securing a 40% stake in the operator of student housing and co-living properties in Spain and France. These investments demonstrate the sovereign wealth fund’s strategic diversification and commitment to high-quality global real estate assets.