Norges Bank Investment Management (NBIM) has acquired a 25% stake in a £1.2bn mixed-use portfolio of predominantly office and retail assets from Grosvenor’s UK property business.
The portfolio comprises 175 market rent and long-leasehold buildings clustered around Grosvenor Street and Mount Street in London’s Mayfair, which Grosvenor will continue to act on as asset, property and development manager.
Grosvenor intends to use the proceeds of the investment to grow its London development pipeline to circa £1.3bn and it will also deploy circa £1bn across its lending platform.
James Raynor, CEO of Grosvenor Property UK, said: “This partnership brings together two deeply aligned, long-term investors who share huge confidence in the future of the West End and London. Facilitating inward investment on this scale will enable us to help drive the West End’s competitiveness and appeal as an economic, cultural and retail centre of global significance.”
He added: “I am excited by the scale and quality of the investment and development opportunities that we have across Mayfair and Belgravia. These will allow us to continue to provide the best-in-class properties for commercial and residential occupiers and will augment the already thriving neighbourhoods in which they are located.”
Jayesh Patel, head of UK real estate at Norges Bank Investment Management, said: “We are very pleased to enter a new partnership with Grosvenor in Mayfair. We have confidence in the long-term value creation inherent in the West End and are excited to see that delivered through Grosvenor’s well-respected management.”
Grosvenor was advised by Lazard, BCLP and KPMG.
