Norway’s pension fund makes new investment in London

January 22, 2025 — In a strategic move to enhance its real estate holdings in one of London’s most prestigious areas, Norway’s pension fund has announced a significant investment in a mixed-use property portfolio located in Mayfair. The acquisition, finalized on January 21, 2025, marks the fund's continued commitment to investing in high-value assets within the UK real estate market.

Norges Bank Investment Management, the fund management division of Norway's central bank, has acquired a 25 percent stake in the portfolio from Grosvenor for a sum of £305.7 million, which effectively values the entire portfolio at £1.223 billion. Notably, the assets are unencumbered by debt, with no financing required for this transaction.

Norway’s pension fund is one of world’s largest pension funds and was established after Norway discovered large offshore oil fields in the North Sea in 1969. The fund was set up to shield the economy from fluctuations in oil revenue. The current revenue from oil and gas production accounts for less than half the value of the fund and most of the earnings today come from invests in equities, fixed income, real estate and renewable energy infrastructure, according to its website.

The 2.3 million square feet portfolio investment comprises a mix of office and retail spaces, prominently located around the vibrant Grosvenor Street and Mount Street in Mayfair. As part of the joint venture, Grosvenor will retain a majority 75 percent interest in the portfolio and will manage it moving forward, leveraging its extensive experience and reputation in the real estate sector.

The market value of the fund was 17,745 billion kroner (about USD 1,577 billions) in the first half of 2024 and unlisted real estate accounted for about 1.7% of the fund, its half year report for the 2024 stated. According to its website, the fund owns hundreds of buildings in some of the world’s leading cities.

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