Grosvenor’s UK property business has entered a joint venture with Norges Bank Investment Management. The deal sees Norges take a 25% stake in a £1.2bn mixed-use portfolio of 175 office and retail assets around Grosvenor Street and Mount Street, in London’s Mayfair.
James Raynor, chief executive at Grosvenor Property UK, said: “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.”
Jayesh Patel, Norges’ head of UK real estate, added: “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.”
Grosvenor, which will continue to manage the portfolio, will deploy the funds across its business, including growing its London development pipeline to £1.3bn and deploying £1bn across its lending platform.
Raynor added: “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 was advised by Lazard, BCLP and KPMG.
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