$740M Investment: Norway’s Sovereign Wealth Fund Expands in London Real Estate

Massive Investment in London’s Prime Real Estate

Norway’s $1.8 trillion sovereign wealth fund, the largest in the world, has made a significant investment in London’s real estate market. On Thursday, the fund announced a $740 million deal to acquire a 25% stake in Covent Garden’s property portfolio, further strengthening its presence in the U.K. capital’s premium real estate sector.

$740 Million Deal with Shaftesbury Capital

The fund’s manager, Norges Bank Investment Management (NBIM), confirmed the purchase of a £570 million ($739 million) stake in a London property portfolio owned by Shaftesbury Capital. This joint venture values the entire portfolio at £2.7 billion ($3.5 billion).

Prime Retail & Leisure Properties in London

The 1.5 million square feet portfolio consists mainly of retail and leisure properties in some of London’s most sought-after locations, including Covent Garden and Seven Dials.

London-listed shares of Shaftesbury Capital surged nearly 16% at market opening, before settling with an 8.9% gain by mid-morning.

NBIM’s head of U.K. real estate, Jayesh Patel, stated,

“This investment reinforces our confidence in London’s strength, complementing our other high-quality West End investments.”

Norway’s Growing Investment in London Real Estate

This isn’t NBIM’s first major move in London’s property market. Earlier this year, the fund invested £306 million ($397 million) in the Duke of Westminster’s Grosvenor estate, acquiring another 25% stake.

The Grosvenor deal, valued at £1.2 billion ($1.56 billion), marked the largest external investment in the Mayfair estate.

Total Investment in 2025 Surpasses £876 Million

With both deals combined, Norway’s sovereign wealth fund has now invested £876 million ($1.14 billion) in London real estate in 2025 alone.

Expanding Beyond London: Student Housing in Spain & France

Beyond the U.K., NBIM also announced a €240 million ($260 million) investment in AXA Lifestyle Housing, acquiring a 40% stake in student housing and co-living properties across Spain and France.

Conclusion

With these investments, Norway’s sovereign wealth fund continues to bet on high-value global real estate, reaffirming London’s status as a top property investment hub.