Norges Bank Investment Management (NBIM) has acquired a 25% stake in a £1.22bn (€1.44bn) mixed-use UK property portfolio from Grosvenor, which retains the remaining ownership of the London assets.
The manager of the NOK20trn (€1.7trn) Norwegian Government Pension Fund Global said it has paid £305.7m for the asset. The portfolio is unencumbered by debt, and no financing was involved in the transaction, NBIM said.
The 2.3m sqft mixed-use portfolio is predominately office and retail assets clustered around Grosvenor Street and Mount Street in London’s Mayfair.
Jayesh Patel, the head of UK real estate at Norges Bank Investment Management, said: “We are very pleased to enter a new partnership with Grosvenor in Mayfair.
“We have confidence in the long-term value creation inherent in the West End and are excited to see that delivered through Grosvenor’s well-respected management,” James Raynor, CEO, Grosvenor Property UK, said. “This partnership brings together two deeply aligned, long-term investors who share huge confidence in the future of the West End and London.
“Facilitating inward investment on this scale will enable us to help drive the West End’s competitiveness and appeal as an economic, cultural and retail centre of global significance.”
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