Fancy a shopping trip in Central London? You’re not alone—Norway’s wealth fund has just gone on a spending spree like none other. It's bought a quarter of Covent Garden.
Norway’s sovereign wealth fund has added one of London’s most famous neighbourhoods to its growing property portfolio.
Norges Bank Investment Management (NBIM), which manages the Government Pension Fund Global—commonly known as the oil fund—has bought a 25% stake in Covent Garden.
The £570 million (NOK 7.7 billion) deal values the historic West End estate at £2.7 billion. It marks the latest in a series of high-profile London property investments by the fund, which now holds substantial assets in the capital’s most prestigious districts.
Why Covent Garden?
Covent Garden, once a bustling fruit and vegetable market, is today one of London’s top tourist attractions.
The estate features more than 220 shops, restaurants, theatres, and cultural landmarks including the Royal Opera House and the London Transport Museum. The famous piazza draws millions of visitors annually, with Christmas alone seeing daily footfall topping one million.
Jayesh Patel, NBIM’s head of UK real estate, described the investment as a vote of confidence in London’s future.
“Covent Garden is one of the world’s most recognised retail, leisure and cultural destinations. This investment underscores our belief in the strength of London, complementing our other high-quality West End holdings,” he said.
The fund bought the stake from Shaftesbury Capital, which will continue managing the estate. The two companies are no strangers—NBIM also owns a 25% share in Shaftesbury itself.
Norway Invests in UK Property
For the Norwegian fund, Covent Garden is just the latest trophy in an expanding UK property collection.
Earlier this year, NBIM spent £306 million on a stake in a Mayfair property portfolio owned by the Duke of Westminster’s Grosvenor Group. It also fully acquired Sheffield’s Meadowhall shopping centre last year.
Launched in 1990 to invest Norway’s oil and gas revenues, the sovereign wealth fund is now the world’s largest, worth around NOK 18 trillion at the time of writing.
While the majority is invested in global stock markets, the fund has increasingly targeted prime real estate, especially in London’s West End.
Shaftesbury Capital’s CEO, Ian Hawksworth, welcomed the partnership with Norway’s oil fund, pointing to their shared long-term confidence in Covent Garden and the wider West End.
“Our portfolio is positioned to deliver sustained income and value growth. This deal demonstrates continuing private market confidence in London’s prime real estate,” he said.
The investment comes at a time when the UK property market faces challenges from higher interest rates and slowing deal activity. Yet, for deep-pocketed investors like NBIM, that presents an opportunity to pick up prized assets at attractive valuations.
So next time you’re strolling through Covent Garden’s cobbled streets, browsing boutiques or catching a show, you might just spare a thought for Norway’s oil fund—now officially one of the landlords of London’s historic heart.
