The Crown Estate has entered into a partnership deal with Norges Bank Investment Management. NBIM will pay £448 million for a 150 year lease on a 25 per cent stake in the Regent Street properties owned by the Crown Estate.
The chief executive of the Crown Estate, Roger Bright, stated, ‘We are delighted that one of the World’s largest sovereign wealth funds, has chosen the Crown Estate and Regent Street for its first ever property investment.’ The funds raised through this deal will be invested across the Crown Estate’s assets.
The partnership deal comes as part of the Crown Estate’s £1 billion regeneration programme which was launched in 2002 and aimed to draw international businesses and retailers to commercial property in London’s Regent Street. Current occupiers of the Crown Estate’s London office space include Lloyds TSB and Matrix group.
The Crown Estate is worth a total of around £6 billion, with annual profit of £211 million.
Image: Flickr (Steve Parker)