The Crown Estate and Norges Bank Investment Management have exchanged contracts on a Regent Street property partnership deal incorporating all of The Crown Estate’s Regent Street properties.
The deal sees NBIM, which manages the Norwegian Government Pension Fund Global, buy a 150-year lease on a 25% stake in the street for £452m. The completion of the purchase, which was first announced in November, is expected on 1 April 2011.
David Shaw, head of Regent Street at The Crown Estate, 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 fits perfectly with our ongoing commitment to regenerating Regent Street to create an international retail and business destination.”
The deal sees The Crown Estate for the first time directly manage assets on behalf of a third-party investor and funds raised from the sale will be used for investment across The Crown Estate’s diverse assets, including Regent Street. This is in line with The Crown Estate’s investment strategy, which 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.
Since 2002 The Crown Estate has been implementing a comprehensive £1bn regeneration programme in Regent Street. Current retailers include Apple, Banana Republic and Jaeger.
The Crown Estate will continue to directly manage the properties on behalf of the partnership, which is committed to large-scale redevelopment and investment in the street’s public realm. Costs for the ongoing programme will be shared proportionately between the two partners.
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