Shaftesbury Capital sells 25% of Covent Garden assets to NBIM

(Sharecast News) - Shaftesbury Capital has sold a 25% stake in its Covent Garden portfolio to Norwegian sovereign wealth fund Norges Bank Investment Management (NBIM) for £570m. The deal values the Covent Garden estate, which covers some 220 buildings across 1.4m square feet, at £2.7bn, in line with an independent property valuation at the end of last year.

Shaftesbury Capital will retain control and management of the portfolio, 74% of which comprises retail, food and beverage outlets, and 26% leased to office and residential clients.

The proceeds will help the company strengthen its balance sheet, invest in existing assets and repay outstanding debt.

"This investment by a leading global real estate investor demonstrates the quality of our portfolio. This partnership brings together two long-term investors who have a shared confidence in and ambitions for the growth prospects of the Covent Garden estate and the West End," said Shaftesbury Capital's chief executive Ian Hawksworth.

"As demonstrated by our recent 2024 results, Shaftesbury Capital's portfolio is anticipated to deliver long-term sustained income and value growth. Backed by a strong balance sheet, we are well-positioned to capitalise on market opportunities in London's West End."