NBIM Acquires 25% Stake in Grosvenor Property UK’s Portfolio

Grosvenor’s UK property business on Wednesday said that it has entered into a joint venture with Norges Bank Investment Management (NBIM) by which the latter has acquired a 25% stake in a mixed use portfolio of predominately office and retail assets, clustered around Grosvenor Street and Mount Street, in London’s Mayfair.

The $1.48 billion portfolio consists of 175 market rent and long-leasehold buildings which Grosvenor will continue to act as asset, property and development manager for, the company said.

Mayfair benefits from considerable long-term, favourable characteristics which have supported its resilience through numerous cycles. These include its concentration of prime retail, hospitality, hotel and cultural assets, unparalleled transport infrastructure, exceptional green spaces and its architectural appeal.

Through continual investment, innovative management and focus on industry leading sustainability commitments, Grosvenor has driven strong performance across its London Estate over the long term.

Demonstrating this strength, occupancy across Grosvenor’s London Estate stood at 97% at the year end and new lettings in 2024 achieved, on average, a 14% premium to ERV.

Recently, the company has also announced that it had reduced carbon emissions across all scopes by 26% between 2019 and 2023 and driven a 3.7% biodiversity net gain across its portfolio since 2021 – key contributors to the London Estate’s resilience, value and occupier wellbeing.

Grosvenor Property UK CEO James Raynor said that 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,” Raynor said.

James Raynor further said: “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.”

NBIM Reposes Confidence

Welcoming the partnership with Grosvenor, Jayesh Patel, Head of UK Real Estate at NBIM, they 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 will invest the funds across the business including growing its London development pipeline to $1.6 billion and deploying $1.23 billion across its lending platform.

The company’s investments currently underway include South Molton, the largest mixed-use development in the West End and the transformation of Grosvenor Square, the most significant private investment in the area’s green space in a generation.