Crown Estate & Norges Bank exchange on £1.8bn Partnership

Regent Street deal will see regeneration of retail and office properties on world-famous thoroughfare

Article posted: 20 Jan 2011

The Crown Estate and Norges Bank Investment Management have exchanged contracts on a Regent Street property partnership deal incorporating all of The Crown Estate’s Regent Street properties. The deal sees NBIM, which manages the Norwegian Government Pension Fund Global, buy a 150 year lease on a 25% stake in the street for £452m. The completion of the purchase is expected on 1 April 2011.

The deal sees The Crown Estate for the first time directly manage assets on behalf of a third party investor and funds raised from the sale will be used for investment across The Crown Estate’s diverse assets including Regent Street. This is in line with The Crown Estate’s investment strategy that focuses on rebalancing the urban portfolio by investing in commercial assets outside of London, in the marine estate and importantly in core central London holdings.

Since 2002 The Crown Estate has been implementing a comprehensive £1bn regeneration programme in Regent Street to transform the street into an international destination for business and retail. Current retailers include Apple, Banana Republic and Jaeger. Offices on Regent Street are home to leading businesses such as Lloyds TSB and Matrix Group.

The Crown Estate will continue to manage the properties on behalf of the partnership, which is wholly committed to building on this successful regeneration through large-scale redevelopment and investment in the street’s public realm. Costs for the ongoing programme will be shared proportionately between the two partners.

For breaking news relating to office space in Central London follow us on http://twitter.com/officespacenews

Posted by Julie