Investing.com — Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, has purchased a 25% stake in a portfolio of office and retail properties in London’s upscale Mayfair district.
The transaction was valued at approximately £306 million ($378 million).
The portfolio includes about 175 buildings situated around Grosvenor Street and Mount Street. The acquisition was made in a joint venture with Grosvenor, a privately-owned international property group, as revealed in a statement by Grosvenor on Wednesday.
The portfolio, which is valued at around £1.2 billion, was nearly fully occupied at the end of last year, with an occupancy rate of 97%. The new leases that were signed last year achieved a 14% premium to the estimated rental value on average.
The acquisition comes at a time when investors are taking advantage of the opportunity to acquire parts of Europe’s prime postcodes at historically low prices or the chance to cash in on rents that are poised for substantial growth.
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