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Highlights

  • Strategic Investment: Shaftesbury Capital sells a 25% non-controlling stake in Covent Garden estate to Norges Bank Investment Management (NBIM) for £570 million.
  • Retained Control: Shaftesbury Capital maintains 75% ownership and management of the estate, valued at £2.7 billion.
  • Financial Growth: The deal strengthens the company’s balance sheet, enhances flexibility, and supports future investment opportunities.

Shaftesbury Capital PLC (LSE:SHC) has announced the formation of a long-term strategic partnership with Norges Bank Investment Management (NBIM), the Norwegian sovereign wealth fund, in relation to its Covent Garden estate. The deal follows the company's earlier announcement on 19 March 2025.

As part of the agreement, Shaftesbury Capital has exchanged contracts to sell a 25% non-controlling interest in Covent Garden to NBIM, while retaining 75% ownership and full management control of the estate. The transaction values Covent Garden at £2.7 billion, aligning with its independent property valuation as of 31 December 2024. The deal is expected to generate gross cash proceeds of approximately £570 million, with completion scheduled for early April 2025.

Covent Garden: A Prime London Destination

Located in London’s West End, Covent Garden is a high-profile, mixed-use destination spanning 1.4 million square feet. The estate features the iconic Piazza, Market Building, and Seven Dials, drawing high footfall and offering seven-day-a-week trading. The property portfolio is divided into:

  • 74% retail and food & beverage spaces
  • 26% office and residential properties

As of 31 December 2024, the estate has a net initial yield of 3.6%, generating an annualized gross income of £104 million, with an estimated rental value (ERV) of £134 million. The portfolio includes 220 buildings and over 850 units, excluding a small portion of long-leasehold residential interests.

Strategic and Financial Benefits

Shaftesbury Capital’s Board highlights multiple advantages of the transaction:

  • Partnership with a Global Investor: The deal establishes a collaboration with NBIM, a leading global investment entity with deep expertise in London’s West End property market.
  • Expansion and Growth Potential: The transaction provides capital to explore investment opportunities within both the partnership and Shaftesbury Capital’s broader portfolio.
  • Strong Valuation and Cash Inflow: The £2.7 billion valuation aligns with an independent CBRE assessment, ensuring a fair market value transaction.
  • Financial Stability: The deal is expected to enhance earnings while keeping the company’s net tangible assets per share neutral. Shaftesbury Capital will continue managing Covent Garden, earning fee income for overseeing operations.
  • Strengthened Balance Sheet: The proceeds provide greater financial flexibility, supporting potential acquisitions, reinvestment in existing assets, or debt reduction.