Norway's €855 bn oil-fuelled pension fund and The Crown Estate, the British monarch's land and property company, have added three assets to their real estate joint venture in Central London.
The Regent Street Partnership paid £120 mln (€140 mln) for a total of 5,000 m2 of office and retail space. The properties are located at 263-269 Oxford Street and 3-5 Swallow Place, 1 Princes Street and 6 Swallow Place, and 2-4 Princes Street.
The acquisition was completed on 15 May 2017. The seller was a joint venture between Aviva Life & Pensions UK and Canada's Public Sector Pension Investment Board (PSP Invest).
The Regent Street Partnership, in which Norges Bank Real Estate Management has a 25% stake, owned 263-269 Oxford Street and 3-5 Swallow Place, over which the vendor had a leasehold interest with a 94-year unexpired term. The property comprises 1,486 m2 of Oxford Street retail space and 1,765 m2 of office space.
The partnership acquired 100% of 1 Princes Street and 6 Swallow Place, which comprises 186 m2 of retail space and 372 m2 of office space.
The final part of the deal involved acquiring the vendor's 33% ownership interest in 2-4 Princes Street. The Regent Street Partnership now owns 100%of the property, which comprises 557 m2 of retail space and 650 m2 of office space.
No financing was used in the acquisition and the assets are held unencumbered with debt.
