Norway's Sovereign Wealth Fund Makes Major London Property Investment
Jan 19, 2026
Key Takeaways
- Norway's sovereign wealth fund is making strategic investments in premium London real estate, totalling £876 million in 2025 alone
- The fund's latest acquisition includes a 25% stake in Covent Garden and Seven Dials properties valued at £2.7 billion
- NBIM is demonstrating strong confidence in London's property market despite global economic uncertainties
- The fund is simultaneously diversifying geographically with investments in Spanish and French student housing
- These moves reflect a long-term strategy focused on high-quality, landmark properties in major European cities
Norway's $1.8 trillion sovereign wealth fund, the world's largest, has continued its significant investment push into London's premium real estate market. On Thursday, Norges Bank Investment Management (NBIM) announced a £570 million ($739 million) deal to acquire a 25% stake in Shaftesbury Capital's London property portfolio.
This latest investment values the entire portfolio at £2.7 billion. It gives NBIM partial ownership of approximately 1.5 million square feet of prime real estate, predominantly focused on retail and leisure properties in the iconic London districts of Covent Garden and Seven Dials.
Building a London Real Estate Empire
This deal represents the second major London property investment by Norway's sovereign wealth fund this year, following a £306 million investment in January for a 25% stake in the Duke of Westminster's historic Grosvenor estate in Mayfair. Combined, these investments total £876 million in London real estate in 2025.
Diversifying Beyond UK Borders
Additionally, NBIM announced it has agreed to pay 240 million euros for a 40% stake in AXA Lifestyle Housing, which owns and operates student housing and co-living properties across Spain and France, further diversifying its European real estate portfolio. Stay tuned to estateagentpower.com for the latest real estate news.
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