Norway’s sovereign wealth fund, the world’s largest, is betting on the future success of London by investing £570 million to buy a 25% stake in the Covent Garden estate. Managed by Norges Bank Investment Management, which oversees $1.8 trillion of government money from the oil sector, this investment is seen as a vote of confidence in the London property market. Covent Garden, one of London’s most dynamic retail, leisure, and cultural areas, has witnessed a significant rebound in tourism post-pandemic, featuring numerous shops, theaters, and attractions like the Royal Opera House and the London Transport Museum.

Jayesh Patel, the head of NBIM’s UK real estate arm, stated that the investment highlights the fund’s belief in London’s strength, noting that Covent Garden is “one of the world’s most recognized retail, leisure, and cultural destinations”. This deal follows a £306 million investment in London’s Mayfair district last year, bringing their London investments up to £875 million. The fund is also a major shareholder in Shaftesbury Capital, which owns the Covent Garden estate, holding a 25% stake in the company.

Shaftesbury’s CEO, Ian Hawksworth, commented that this partnership between two long-term investors is a testament to their shared ambition for the growth prospects of the Covent Garden estate and London’s West End. The estate, which stretches from Covent Garden to Chinatown and Soho, saw record numbers of visitors over the holiday season, with Shaftesbury recording over 1 million visitors a day. Hawksworth emphasized that Shaftesbury Capital’s portfolio is poised to provide long-term income and value growth, backed by a strong financial position and a strategic location in London’s vibrant West End.

Source: https://www.theguardian.com/business/2025/mar/20/norway-sovereign-wealth-fund-buys-london-covent-garden