Grosvenor and Norges Bank Forge Strategic Partnership in Mayfair
Deal News | Jan 22, 2025 | Grosvenor Group Ltd
Grosvenor Group's UK property arm has entered into a joint venture with Norges Bank Investment Management (NBIM), wherein NBIM acquires a 25% stake in a £1.2 billion mixed-use portfolio in London's Mayfair. This portfolio predominantly comprises office and retail spaces. Grosvenor will continue managing these assets, emphasizing their strong resilience and investment potential. The collaboration aims to enhance West End's global competitiveness, supported by Grosvenor's sustainable practices, including a noted reduction in carbon emissions and biodiversity enhancements. Grosvenor plans to allocate the investment to expand its development pipeline and its lending platform, with notable projects like the South Molton development and the transformation of Grosvenor Square. This partnership is lauded by both James Raynor of Grosvenor and Jayesh Patel of NBIM for their shared confidence in Mayfair's enduring value.
Sectors
- Real Estate
- Investment Management
- Sustainable Development
Geography
- United Kingdom – This is the location of Grosvenor's UK property business and the real estate portfolio in London's Mayfair.
- Norway – Norges Bank Investment Management, a participant in the joint venture, is based in Norway.
Industry
- Real Estate – This industry is involved because the joint venture revolves around a portfolio of real estate assets located in London's Mayfair.
- Investment Management – Norges Bank Investment Management is an investment management entity that is acquiring a stake in the real estate portfolio.
- Sustainable Development – Grosvenor's commitment to sustainability, including carbon reduction and biodiversity initiatives, aligns with this industry.
Financials
- £1.2 billion – The valuation of the mixed-use property portfolio involved in the joint venture.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Grosvenor Group Ltd. | Property Developer and Manager | Company | Grosvenor is an international organisation involved in urban property, agtech, and more, known for sustainable development in the UK. |
| Norges Bank Investment Management | Investor | Company | The investment arm of the Norwegian central bank, participating in the joint venture by acquiring a stake in the Mayfair portfolio. |
| James Raynor | CEO, Grosvenor Property UK | Person | Chief Executive Officer of Grosvenor's UK property division and a key spokesperson for the joint venture. |
| Jayesh Patel | Head of UK Real Estate, Norges Bank Investment Management | Person | Responsible for UK real estate investments at Norges Bank, a representative for their involvement in the venture. |
| Lazard | Financial Advisor | Company | Acted as a financial advisor to Grosvenor for the joint venture. |
| BCLP | Legal Advisor | Company | Provided legal advisory services to Grosvenor in the joint venture. |
| KPMG | Consultant | Company | Provided consulting services to Grosvenor for the joint venture. |