Norway’s sovereign wealth fund, Norges Bank Investment Management, has secured a £570 million deal to acquire a 25% stake in London’s iconic Covent Garden estate, signaling a continued strong bet on the UK capital’s retail and leisure sector. This investment adds to the fund’s growing portfolio in central London, which includes high-profile properties such as its recent £300 million stake in part of the Duke of Westminster’s Grosvenor estate.
The deal, announced by UK-listed landlord Shaftesbury Capital, marks a significant move for Norges Bank Investment Management, which is diversifying its holdings in London’s West End. The £2.7 billion Covent Garden estate will remain under Shaftesbury’s management, ensuring continuity for the popular destination known for its vibrant retail, leisure, and cultural offerings. Jayesh Patel, head of UK real estate at Norges, expressed confidence in the long-term potential of London’s property market, noting that the Covent Garden estate complements their other high-quality West End investments.
This strategic acquisition underscores the ongoing appeal of London’s central areas, with investors continuing to see value in its prime real estate despite broader economic challenges. The move also highlights the growing influence of international investors, with the Norwegian oil fund continuing to place significant stakes in some of the capital’s most sought-after properties.
