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(Alliance News) - Shaftesbury Capital PLC said on Thursday it has formed a long-term partnership with Norges Bank Investment Management, the Norwegian sovereign wealth fund, in relation to its Covent Garden estate, in London's West End.
The real estate investment trust, created from the merger of Capital & Counties Properties PLC and Shaftesbury PLC, said it has exchanged contracts for the sale of a 25% non-controlling interest in the Covent Garden estate to Norges.
Shaftesbury will retain 75% ownership and management control over the estate.
The transaction values the Covent Garden estate at GBP2.7 billion, in line with its independent property valuation as at December 31, 2024, the group said.
It expects gross cash proceeds from Norges of about GBP570 million, and the transaction is expected to complete in early April.
"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," Shaftesbury Chief Executive Officer Ian Hawksworth says.
"Through partnering with private capital, this transaction leverages our operating expertise and assets, enhancing growth and expansion opportunities across our portfolio whilst strengthening our financial position and providing significant optionality to the group," Hawksworth said.
"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 UK real estate at Norges.
Shaftesbury shares were 13% higher at ZAR31.01 each in Johannesburg, before the opening bell in London.
By Artwell Dlamini, Alliance News reporter
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