Shaftesbury Capital: Norges Bank Invests £570m in Covent Garden
Deal News | Mar 20, 2025 | EIN
Norges Bank Investment Management, the world's largest sovereign wealth fund, has purchased a 25% stake in Covent Garden from Shaftesbury Capital for £570 million. This move marks the latest significant investment in London's property market by the fund, which manages £1.5 trillion originating from Norway’s oil and gas revenues. In recent months, Norges has invested a total of £876 million into central London real estate, underscoring its confidence in the city’s market viability. Covent Garden, a renowned cultural and retail hub, will continue to be managed by Shaftesbury. Norges, which already holds significant property assets in London, including Regent Street and the Meadowhall shopping centre, is perceived as showing a long-term commitment to the value of London’s prime real estate. As the largest shareholder in Shaftesbury, Norges has a potential influence on future merger and acquisition activities in the sector.
Sectors
- Real Estate
- Sovereign Wealth Fund
- Retail and Leisure
Geography
- United Kingdom – The article discusses an investment in London's Covent Garden, a significant location in the UK.
- Norway – The investment is made by Norges Bank Investment Management, part of Norway's sovereign wealth fund.
Industry
- Real Estate – This article focuses on the acquisition of a significant stake in the Covent Garden estate, which is a prominent real estate asset in London.
- Sovereign Wealth Fund – Norges Bank Investment Management, a sovereign wealth fund, is the key investor in the real estate transaction discussed in the article.
- Retail and Leisure – The properties involved include retail outlets, bars, restaurants, and cafes, making the retail and leisure industry central to the transaction.
Financials
- £570 million – The amount paid by Norges Bank Investment Management for a 25% stake in Covent Garden.
- £2.7 billion – Valuation of the Covent Garden portfolio, including debt.
- £876 million – Total investment by Norges in central London over the past two months.
- £5 billion – The valuation of Shaftesbury’s entire estate.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norges Bank Investment Management | Buyer | Company | The world's largest sovereign wealth fund, managing the investment of Norway's oil and gas revenues. |
| Shaftesbury Capital | Seller | Company | A major property owner in central London, including Covent Garden and other premium locations. |
| Jefferies | Industry Analyst | Company | Mike Prew from Jefferies provided an analysis of the investment, indicating it signaled confidence in the property market. |
| AJ Bell | Investment Analyst | Company | Russ Mould from AJ Bell commented on the strategic implication of Norges' recent property investments. |