The Norwegian Government Pension Fund Global has bought 50% of the UK shopping center Meadowhall for £348 million (approx. 431 million), or approximately 3.2 billion Norwegian kroner.
Meadowhall attracts about 25 million visitors a year.
The stake was purchased from a joint venture between London & Stamford Properties and Green Park Investments. The transaction, completed on October 6, values the entire asset at £1.525 billion (approx. 1.89 billion), including debt.
"The purchase gives us exposure to one of the largest and most dominant shopping centers in the UK," says Karsten Kallevig, chief investment officer for real estate at Norges Bank Investment Management (NBIM), manager of the fund.
Meadowhall, located about 5 kilometers north east of Sheffield city center, attracts about 25 million visitors a year. The shopping center contains 141,000 m² of lettable retail space over two levels. It consists of 219 shops, 53 kiosks, 30 catering units and a cinema with 11 screens.
NBIM has also entered into a joint venture with British Land, which holds the remaining 50% of Meadowhall. British Land will manage the shopping center on behalf of the partnership.
"We are very pleased to be teaming up with a partner of British Land's caliber and look forward to working together to further develop the long-term potential of Meadowhall," says Kallevig.