Shaftesbury Capital, a London-listed company, experienced a significant surge in share prices, climbing nearly 16% at the market open following a major investment announcement. Norges Bank Investment Management (NBIM) has agreed to invest £570 million for a 25% stake in Shaftesbury Capital's London property portfolio, which is valued at £2.7 billion. This deal highlights the confidence investors have in the strength of London's retail and leisure real estate market.
The company's impressive portfolio spans 1.5 million square feet, predominantly located within the vibrant London districts of Covent Garden and Seven Dials. These areas are well-known for their bustling retail and leisure properties, which attract both local and international visitors. The investment from NBIM is part of its broader strategy, marking a cumulative £876 million investment in London throughout the year.
Shaftesbury Capital saw its shares pare gains slightly after the initial surge, yet the investment news remains a significant boost for the company. The transaction is structured as a joint venture between NBIM and Shaftesbury Capital, with NBIM securing a 25% stake in this venture. This joint venture is valued at £1.2 billion, marking the largest sale to outside investors in Grosvenor's historic Mayfair estate.
"This investment underscores our belief in the strength of London with the portfolio complementing our other high quality West End investments," said Jayesh Patel, head of U.K. real estate at NBIM.
The deal reflects a strong interest and confidence in London's prime real estate market, particularly in high-demand areas like Covent Garden and Seven Dials. By investing in Shaftesbury Capital's portfolio, NBIM aims to enhance its presence and leverage the potential growth opportunities within these key districts.