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Norway’s oil fund has reached a £ 570m agreement to buy a quarter of the COvent Garden from the UK owner Shafa’idian Capital, on the latest Bette of Sovereign Asset Fund in Central London.
Norges Bank’s investment management has exchanged contracts to obtain a 25 percent non-controlling shares in the COVTS £ 2.7 billion, which Shaftesbury will continue to manage. It pursues a deal for a £ 30m action in a part of the Duke of Westminster Duke’s Grosvenor wealth.
“This investment underlines our confidence in the London force with the portfolio that meets our other high quality West End investments. Covent Garden is one of the most popular retail and cultural time destinations in the world,” said Jayesh Patel, head of real estate in the United Kingdom in Norges.
The deal, first reported by Costar News, brings Norges investments in London this year to more than 875 million – – its first big purchases in the city since 2018.
The fund is also a major shareholder in the owners listed in London, including holding a 25 percent shares in Shaftesbury.
It has agreed to private minority agreements in the past. She now owns an action on the regent route with crown property, and has invested in Polen’s wealth near Savile Row, where she increased her ownership last year.
She also invested outside London last year, taking over the full ownership of the Meadowhall Shopping Center in Sheffield in a £ 360m agreement with British land.
“The biggest picture is (Norges) rolling at the end of the West. As a vote of faith,” said Jefferies Analyst Mike Prew in a note.
Norges will pay £ 570m in money for a quarter of Covent Garden, which will continue to hold £ 380m debt against its 2.7BN asset value.
The agreement is confirmed by the independent Shaftesbury assessments of the 220 buildings portfolio about the historic vegetable market and the Royal Opera House in Central London.
Shares to the listed owners have traded at a discount on the value of their assets in recent years as high interest rates made investors careful about commercial properties.
Shaftesbury General Director Ian Hawksworth said the deal indicated that private investors were getting a more positive and selective view of the sector. “There is a lot of evidence in the market that private capital is setting a premium on high quality real estate. On the stock market.”
West End has advanced from a tourism attack since pandemia. Shaftesbury reported her Christmas most loaded in 2024 with more than 1MM visit a day at peak time in her property portfolio including Soho, China Town and Covent Garden.
Growing rents for its stores, restaurants and office space increased the value of £ 5 billion property by property by 4.5 percent in 2024. Shaftesbury said the agreement revenue gave it flexibility to reduce debt, invested in existing properties and receiving more buildings within its End West field.
