Norway's wealth fund buys another London property

[OSLO] Norway's sovereign wealth fund, the world's largest, bought a stake in an estate in London's Mayfair district for £343 million (S$720 million), expanding its property holdings in the UK capital.

The fund bought a 57.8 per cent share in the 1.3-ha Pollen Estate between Regent Street and Bond Street from the Church Commissioners for England, Oslo-based Norges Bank Investment Management said yesterday. The UK Crown Estate bought a 6.4 per cent stake for US$38 million.

"The purchase is according to the fund's strategy to build a global, but concentrated, real estate portfolio," a spokesman said. "Our strategy is to focus our investments on a limited number of large global cities, where we invest in core retail and office properties." The purchase expands Norway's holdings in London after it agreed in 2010 to buy a US$772 million stake in Regent Street from the Crown Estate. The Pollen Estate's 43 properties include office and retail space in a square also bordered by Conduit Street and Burlington Gardens that includes Savile Row. The properties will continue to be managed by the trustee company. The UK Secretary of Defence-Greenwich Hospital also owns 10 per cent, while the Pollen family holds 25.8 per cent.