News

Crown confirms tie up with Norges on Regent Street partnership

News

Bridget O’Connell

04 November 2010

Offices, Residential, Retail

The Crown Estate has confirmed that it has selected the Norwegian Government Pension Fund Global to take a 25% stake in its £1.8bn Regent Street property partnership deal.

Norges Bank Investment Management, which manages the pension fund, has agreed to buy a 150-year lease for £448m as part of the deal.

NBIM was selected from a shortlist of four bidders including Oxford Properties, which invests on behalf of one of Canada’s largest pension plans, Ontario Municipal Employees Retirement System, Australia’s Future Fund and Canada’s PSP Investments.

This is the first time the Crown has formed a partnership which results in it directly managing assets on behalf of a third party investor.

Funds raised from the sale will be used for investment across The Crown Estate’s diverse property portfolio – including in Regent Street which has been the focus of a £1bn regeneration programme since 2002.

This is in line with the Crown’s investment strategy that focuses on rebalancing the urban portfolio by investing in commercial assets outside of London, in the marine estate and importantly in core central London holdings.

The Crown Estate’s Regent Street team, led by David Shaw, head of Regent Street portfolio, will continue to directly manage the properties on behalf of the partnership, which is wholly committed to building on this successful regeneration through large-scale redevelopment and investment in the Street’s public realm.

Costs for the ongoing programme will be shared proportionately between the two partners.

The Crown Estate chief executive, Roger Bright, said: “We are delighted that one of the world’s largest sovereign wealth funds, has chosen The Crown Estate and Regent Street for its first ever property investment.

“NBIM’s long-term approach is aligned ideally with The Crown Estate’s own core values, commercialism, integrity and stewardship.”

NBIM’s chief executive, Yngve Slyngstad, added: “We are very pleased to become a partner in Regent Street with The Crown Estate. This will be the fund’s first real estate investment and we look forward to a long and beneficial partnership.”

bridget.oconnell@estatesgazette.com

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The Crown Estate has confirmed that it has selected the Norwegian Government Pension Fund Global to take a 25% stake in its £1.8bn Regent Street property partnership deal. Norges Bank Investment Management, which manages the pension fund, has agreed to buy a 150-year lease for £448m as part of the deal. NBIM was selected from a shortlist of four bidders including Oxford Properties, which invests on behalf of one of Canada’s largest pension plans, Ontario Municipal Employees Retirement System, Australia’s Future Fund and Canada’s PSP Investments. This is the first time the Crown has formed a partnership which results in it directly managing assets on behalf of a third party investor. Funds raised from the sale will be used for investment across The Crown Estate’s diverse property portfolio – including in Regent Street which has been the focus of a £1bn regeneration programme since 2002. This is in line with the Crown’s investment strategy that focuses on rebalancing the urban portfolio by investing in commercial assets outside of London, in the marine estate and importantly in core central London holdings. The Crown Estate’s Regent Street team, led by David Shaw, head of Regent Street portfolio, will continue to directly manage the properties on behalf of the partnership, which is wholly committed to building on this successful regeneration through large-scale redevelopment and investment in the Street’s public realm. Costs for the ongoing programme will be shared proportionately between the two partners. The Crown Estate chief executive, Roger Bright, said: “We are delighted that one of the world’s largest sovereign wealth funds, has chosen The Crown Estate and Regent Street for its first ever property investment. “NBIM’s long-term approach is aligned ideally with The Crown Estate’s own core values, commercialism, integrity and stewardship.” NBIM’s chief executive, Yngve Slyngstad, added: “We are very pleased to become a partner in Regent Street with The Crown Estate. This will be the fund’s first real estate investment and we look forward to a long and beneficial partnership.” bridget.oconnell@estatesgazette.com To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.