Shaftesbury Capital forms strategic partnership with Norges Bank Investment Management

LONDON: Shaftesbury Capital PLC has entered a long-term strategic partnership with Norges Bank Investment Management (NBIM), the Norwegian sovereign wealth fund, involving the Covent Garden estate in London’s West End. The agreement will see NBIM acquire a 25% non-controlling stake in the estate for approximately £570 million, valuing the property at £2.7 billion. Shaftesbury Capital will retain 75% ownership and management control.

Completion of the transaction is expected in early April 2025, with the estate’s valuation aligned with its December 31, 2024, independent property appraisal. Proceeds from the deal will bolster Shaftesbury Capital’s financial flexibility, enabling acquisitions, portfolio investments, and debt reduction.

Covent Garden is a globally renowned mixed-use destination, encompassing over 1.4 million square feet of retail, office, residential, and food and beverage assets. Ian Hawksworth, Chief Executive of Shaftesbury Capital, highlighted the partnership’s potential to strengthen growth prospects and financial standing, citing a shared vision with NBIM.

“This partnership underscores the quality of our portfolio and represents confidence in Covent Garden’s growth potential,” Hawksworth said.

NBIM’s Head of UK Real Estate, Jayesh Patel, expressed enthusiasm about the investment, emphasizing its alignment with other high-profile West End holdings.

The deal is anticipated to enhance Shaftesbury Capital’s earnings and financial position, with the group’s loan-to-value ratio projected to fall to 16% following the transaction. Covent Garden’s future remains tied to long-term income growth and strategic investments.