The Oil Fund (Government Pension Fund – Global) has agreed to buy a 25 percent stake in a lease for the next 150 years, on all 113 buildings on Regent Street belonging to The Crown Estate, owned on behalf of the UK. This will give the fund’s its first stake in property should the deal, costing an estimated 448 million pounds, be approved by the end of March next year.
“A move into real estate will strengthen the fund, which today is solely invested in stocks and bonds,” Yngve Slyngstad, chief executive officer of Norges Bank Investment Management (NBIM), says in a press release. In return, the fund will receive 25 percent of the properties’ net income from shops such as Burberry and Hamleys, which would mainly come from office and retail space rent. The Crown Estate would retain 75 percent.
In return, 25 percent of the properties’ net income will flowshops such as Burberry and Hamleys will pay 25 percent of their net income, which comes mainly from office and retail space rental.
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