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The Duke of Westminster’s property empire, Grosvenor, has orchestrated a landmark deal by selling a £306 million stake in its prestigious Mayfair estate to Norway’s sovereign wealth fund, marking a significant shift in London’s prime property landscape.
The Norwegian oil fund, managing assets worth $1.7 trillion, will acquire a 25 per cent stake in a newly formed joint venture valued at approximately £1.2 billion. The portfolio encompasses 175 distinguished buildings, including the luxurious Connaught hotel, situated around Mount Street and Grosvenor Street.
This transaction represents the most substantial external investment in the historic Mayfair estate since its development began under Grosvenor family stewardship in the 1720s. James Raynor, chief executive of Grosvenor’s UK property division, emphasised the strategic importance of maintaining management control despite the partnership.
The deal structure allows Grosvenor to retain freehold ownership while the joint venture holds long-term leases. The portfolio distribution comprises 45 per cent office space, 30 per cent retail, and 10 per cent residential properties, strategically selected to provide diverse income streams.
Grosvenor plans to channel the proceeds into its expanding UK residential development lending business and support its ambitious £1.3 billion development pipeline. These projects include the transformation of Grosvenor Square and a £500 million redevelopment near Bond Street station in partnership with Mitsui Fudosan.
The Norwegian fund’s investment demonstrates renewed confidence in London’s West End, building upon their existing stakes in Regent Street and the Pollen Estate. This move reinforces their commitment to prime UK real estate, following their recent £360 million acquisition of a 50 per cent stake in Sheffield’s Meadowhall shopping centre
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