Norway's sovereign wealth fund, the world's biggest, has struck a hefty £570mn deal to acquire a quarter of the estate. Norges Bank Investment Management (NBIM), announced today, Thursday March 20 it has exchanged contracts to buy a 25% non-controlling stake in the £2.7bn Covent Garden estate, which Shaftesbury will continue to manage.

Covent Garden is home to approximately 227 shops across its 15 streets including flagship stores, designer boutiques and one historic Piazza. Jayesh Patel, head of UK real estate at NBIM, expressed his confidence in the deal, stating: "This investment underscores our belief in the strength of with the portfolio complementing our other high quality West End investments."

He added: "Covent Garden is one of the world's most recognised retail, leisure and cultural destinations and we look forward to supporting Shaftesbury Capital's management team, with their strong track record of delivering the growth potential of this prime West End estate."

Shaftesbury Capital chief executive Ian Hawksworth said: "This partnership brings together two long-term investors who have a shared confidence in ambitions for the growth prospects of the Covent Garden estate and the West End".

With mulled wine festivals, alpine-themed pop-ups, and special shopping events, Covent Garden drew in big festive crowds at Christmas.

"As demonstrated by our recent 2024 results, Shaftesbury Capital's portfolio is anticipated to deliver long-term sustained income and value growth. Backed by a strong balance sheet, we are well positioned to capitalise on market opportunities in London's West End," Hawksworth added.

This move marks the latest investment by Norway's sovereign wealth fund in London's capital and comes just two months after Norges snapped up a £306m stake in London's Mayfair district from the Duke of Westminster's property company, Grosvenor. This brings the Norwegian fund's investment in the capital city to £875m. The fund invests Norwegian oil profits into other asset investments.

The fund is also a shareholder in Shaftesbury, where it has a 25% stake in the company.

Last yeara NBIM is acquired full ownership of Meadowhall Shopping Centre in Sheffield after striking a £360m deal with British Land.