Norges Bank Investment Management (NBIM) has expanded its ownership of Meadowhall shopping centre in the UK, on behalf of Norway’s Government Pension Fund Global (GPFG).

NBIM has signed an agreement to acquire an additional 50 per cent interest in the shopping and leisure centre from its partner British Land. With this acquisition, the fund will hold a 100 per cent ownership interest in Meadowhall.

NBIM will pay £360m for its additional 50 per cent ownership interest, valuing the property at £720m. However, the property is encumbered by £426m of existing debt but no further financing will be involved in the transaction.

“We are very pleased to extend our ownership in Meadowhall, a dominant super-regional shopping centre with strong occupier fundamentals,” NBIM chief investment officer real assets, Mie Holstad, said.

The property comprises 1.4 million square feet of retail floor area and British Land will remain as asset manager of the centre.

“Despite being out of favour, we remain confident in the prime shopping centre sector, where rents and yields have rebased significantly. We are pleased to have the ability to acquire an additional stake in Meadowhall,” NBIM head of UK real estate, Jayesh Patel, added.

The agreement was signed on 18 May 2024, with completion expected on 12 July 2024.

---