Norway wealth fund boosts London holdings with Pollen Estate deal

Norway's sovereign wealth fund, the world's largest, bought a stake in an estate in London's Mayfair district for £343 million (HK$4.5 billion), expanding its property holdings in the British capital.

The fund bought a 57.8 per cent share in the 1.6-hectare Pollen Estate between Regent Street and Bond Street from the Church Commissioners for England, Norges Bank Investment Management said on Monday. The Crown Estate acquired a 6.4 per cent stake for £38 million.

"The purchase is according to the fund's strategy to build a global, but concentrated, real estate portfolio," spokesman Thomas Sevang 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 deal 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 British Secretary of Defence-Greenwich Hospital also owns 10 per cent, while the Pollen family holds 25.8 per cent.

The estate was established in 1622 with 14 hectares of land including what is now Great Marlborough Street and Hanover Street in Mayfair.