Shaftesbury Capital has sold a 25% stake in its estate in London’s Covent Garden to Norwegian sovereign wealth fund Norges Bank Investment Management for £570m..
The deal values the estate at £2.7bn, in line with its December valuation. Shaftesbury Capital said it will recycle some of the proceeds into new acquisitions, with “a number of buildings currently under review”.
The 220-building portfolio has a net initial yield of 3.6%, annualised gross income of £104m and an estimated rental value of £134m. Shaftesbury Capital will retain control and management of the estate.
Ian Hawksworth, chief executive of Shaftesbury Capital, said: “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.”
Jayesh Patel, head of UK real estate at NBIM, added: “This investment underscores our belief in the strength of London with the portfolio complementing our other high quality West End investments.”
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