Business
SHC and NBIM establish Covent Garden partnership
SHC and NBIM establish Covent Garden partnership.
About this update from Shaftesbury Capital Plc
[{"type":"text","content":"\n\n \n\nFOR IMMEDIATE RELEASE\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n20 March 2025\nShaftesbury Capital PLC\nShaftesbury Capital PLC and Norges Bank Investment Management establish Covent Garden partnership\nFurther to the announcement dated 19 March 2025, Shaftesbury Capital PLC (\"Shaftesbury Capital\" or the \"Group\") is pleased to announce that it has formed a strategic, long-term partnership (the \"Partnership\") with Norges Bank Investment Management (\"NBIM\"), the Norwegian sovereign wealth fund, in respect of its Covent Garden estate. \nShaftesbury Capital has exchanged contracts for the sale of a 25 per cent non-controlling interest in the Covent Garden estate to NBIM (the \"Transaction\") with Shaftesbury Capital retaining 75 per cent ownership and management control over the estate. The Transaction values the Covent Garden estate at £2.7 billion, in line with its independent property valuation as at 31 December 2024 (adjusted for a small asset acquisition post year-end), with expected gross cash proceeds of approximately £570 million. Completion of the Transaction is expected to take place in early April 2025. \nCovent Garden is a world-class global destination in the heart of the West End of London, centred around the iconic Piazza, the Market Building and surrounding streets, together with Seven Dials. It is a mixed-use portfolio of assets, with 74 per cent of the property value represented by retail and food & beverage and 26 per cent by office and residential. The estate is a vibrant, high-footfall destination, which provides a seven-days-a-week trading environment and exposure to a diverse customer base which has proven to be resilient throughout economic cycles.\nThe portfolio has a net initial yield of 3.6 per cent, annualised gross income of £104 million and an estimated rental value (ERV) of £134 million as at 31 December 2024. The portfolio covers some 220 buildings and over 850 units, across 1.4 million square feet (excluding 0.1 million square feet of long-leasehold residential interests). \nBenefits of the transaction\nThe Board of Shaftesbury Capital (the \"Board\") believes that the Transaction will provide a number of strategic and financial benefits, including:\n· Creation of a strategic partnership with a leading global investor with...