Norwegian Oil Fund goes on London shopping spree / News / The Foreigner

Norwegian Oil Fund goes on London shopping spree. Wealthy Norway’s Oil Fund has started its Christmas shopping at Hamleys early. It is to spend approximately 4.2 billion kroner on London’s Regent Street. 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.

oil, fund, government, pension, yngve, slyngstad, hamleys, burberry, calvin, klein, norway, crown, estate, regents, street, trafalgar, square



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Norwegian Oil Fund goes on London shopping spree

Published on Friday, 5th November, 2010 at 15:10 under the news category, by Michael Sandelson   .
Last Updated on 5th November 2010 at 20:42.

Wealthy Norway’s Oil Fund has started its Christmas shopping at Hamleys early. It is to spend approximately 4.2 billion kroner on London’s Regent Street.

Hamleys in London
Hamleys in London
Photo: MuLaN/Flickr


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.

However, there was little ‘ho, ho, ho’ from some shoppers on their way to Christmas.

“It is both sad and a shame. Selling this street to foreigners pays no respect to history, but the [UK] government is doing many strange things,” Beryl Williams tells Aftenposten.

Moreover, with another 150 billion kroner, as well as an additional borrowing limit of 300 billion, there could be more properties to ‘put’ underneath the annual Norwegian Christmas tree in Trafalgar Square.

“We have an ongoing dialogue with some of the UK’s largest property companies,” says Slyngstad.

The fund will also be making purchases in France and Germany next year.



Published on Friday, 5th November, 2010 at 15:10 under the news category, by Michael Sandelson   .
Last updated on 5th November 2010 at 20:42.

This post has the following tags: oil, fund, government, pension, yngve, slyngstad, hamleys, burberry, calvin, klein, norway, crown, estate, regents, street, trafalgar, square.





  
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