Norges Bank Investment Management (NBIM), the Sovereign Fund of Norway and the major in the world, has reached a agreement With Shaftesbury Capital to buy a quarter of Covent Garden in London for 570 million pounds (681 million in euros) This Thursday. Thus, the Fund hardens its commitment to the British market, and adds to its portfolio a 25% participation the iconic district of Covent Garden, one of the most coveted corners in the real estate sector of the United Kingdom.
This means that NBIM, the Nordic country oil fund, is left with a room of the portfolio that includes first -value real estate in 2.7 billion pounds in the central district of London. This is the second acquisition in London for the fund so far this year, and arrives at a profitable time for Norges Bank, which has taken advantage of the current conditions of the British real estate market, and high interest rates to make greater profitability. The Central Bank of England decided on Thursday maintained its interest rates in 4.5% and continued the passage of the Fed last Wednesday.
For its part, Shaftesbury Capital, a specialized fund in the British real estate sector, remains with 75% of the participation in the famous neighborhood of London. Shaftesbury capital shares have shot up to 18% in the stock market since the agreement was published this Thursday, its best stock market in five years. Currently, the shares rise 6% in the London Stock Exchange.
It is not the first time that Norges Bank is launched to the real estate market in London. The fund acquired, in the heat of the financial crisis of 2008, a participation in the Crown Estate portfolio, an assortment of properties that belong to the British monarchy and retains key properties in Recent Street. However, although the amount of value in its assets seems a lot, the real estate portfolio of the fund only represents 3.5% of the total investments and reaches 62 billion euros, with 634 companies in 40 countries. In addition, Norges Bank also retains key participations in Spain, and has a participation of more than 5% in Iberdrola.
