Norges Bank Investment Management buys 25 per cent of a 175 office and commercial buildings cluster
UK Real Estate Group Grosvenor sold a 25% of its portfolio to Norges Bank Investment Management (NBIM). The mainly residential and commercial assets are worth 1.2 billion GBPs and are in London’s Mayfair area. Grosvenor will keep the management and the development of 175 properties whose tenants signed long term lease contracts (see here the press release). Lazard, BCLP and KPMG assisted the vendor.
At the end of 2024, the portfolio’s occupancy rate was of 97% while new leases posted an average premium of 14% compared to ERV. Grosvenor recently said that its carbon emissions between 2019 and 2023 have gone down 26% for a net biodiversity gain of 3.7% for its whole portfolio since 2021. Such key achievements have been a benefit for the resilience and the wellbeing of London Estate tenants.
Jayesh Patel, NBIM Head of UK Real Estate, said: “We are delighted to enter a new partnership with Grosvenor in Mayfair. We have confidence in the long-term value creation inherent in the West End and are excited to see that delivered through Grosvenor’s well-respected management.”
James Raynor, ceo of Grosvenor Property UK, added: “This partnership brings together two deeply aligned, long-term investors who share huge confidence in the future of the West End and London. Facilitating inward investment on this scale will enable us to help drive the West End’s competitiveness and appeal as an economic, cultural and retail centre of global significance. I am excited by the scale and quality of the investment and development opportunities that we have across Mayfair and Belgravia. These will allow us to continue to provide the best-in-class properties for commercial and residential occupiers and will augment the already thriving neighbourhoods in which they are located.”
Grosvenor aims to invest up to 1.3 billion in London while deploying up to 1 billion across its lending platform. Current investments underway include South Molton, the largest mixed-use development in the West End and the transformation of Grosvenor Square, the most significant private investment in the area’s green space in a generation.
In late 2024, Grosvenor signed an even joint venture with Generali Real Estate (see here a previous post by BeBeez) for the develompment of residential properties in London and other main cities in the UK. The firms will provide financing facilities of up to 60 million for developments, especially those with ESG credentials.
