While European nations struggled under record-high energy prices, factory shutdowns, and inflation, Norway quietly pocketed billions—and now, it’s putting that money to work. Norway’s Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund, is spending £570 million ($739 million) to acquire a 25% stake in Covent Garden, a prime London shopping district that’s booming post-pandemic.
The deal is yet another example of how the EU bore the brunt of the energy crisis while London and Norway emerged as winners, consolidating their positions as global financial powerhouses at the expense of European taxpayers and businesses.
How the EU Got Played: Paying Through the Nose for Energy While Norway Got Rich
The energy crisis was disastrous for much of Europe. After the EU severed its dependence on cheap Russian gas, it had little choice but to pay a premium for alternative suppliers. Enter Norway—the largest natural gas producer in Western Europe—who stepped in as the new dominant supplier, but at a hefty price.
When gas prices skyrocketed following the war in Ukraine and the mysterious destruction of the Nord Stream pipeline, Norway’s state-controlled energy giant Equinor reported record profits, funneling billions into the country’s coffers.
While Germany and other EU nations pleaded for price caps on Norwegian gas to ease their financial strain, Norway flatly refused—letting the crisis unfold while enjoying its biggest financial windfall in history. European factories cut production, consumers paid the highest energy bills in decades, and economies teetered on recession, but Norway’s sovereign wealth fund swelled to nearly $2 trillion.
Now, while European nations grapple with the economic aftermath, Norway is plowing its gas money into elite real estate markets, solidifying its dominance while Europe is left with the bill.
London: The Other Big Winner Amid Europe’s Decline
While EU capitals struggled to contain inflation and subsidize their energy-starved industries, London—freed from the EU after Brexit—became a magnet for foreign capital. Norway’s investment in Covent Garden is just the latest in a series of power moves reinforcing London’s financial supremacy.
With post-pandemic foot traffic rebounding, Covent Garden’s value has surged to £2.7 billion ($3.5 billion), attracting luxury retailers and investors alike. High-end brands like Diptyque, Alo Yoga, and Charlotte Tilbury are cashing in on the growing demand, and Norwegian money is following close behind.
This isn’t NBIM’s first conquest in London. In January, the fund snapped up a quarter of the Grosvenor property portfolio in Mayfair for £307.5 million, and it already owns a share of Regent Street through a partnership with the Crown Estate.
At a time when European cities are struggling to maintain economic stability, London is strengthening its grip as a global financial hub—thanks, in part, to the massive wealth transfer from desperate EU nations to Norway.
Europe Loses, Norway and London Win
Norway’s refusal to cut gas prices for its struggling neighbors ensured that the EU suffered one of its worst economic shocks in recent history. Industries across Germany, France, and Italy buckled under energy costs, while ordinary citizens were left to pay soaring utility bills.
And now? That same money Europeans were forced to hand over is being reinvested into luxury properties in London, not Europe.
“This investment underscores our belief in the strength of London,” said Jayesh Patel, head of UK real estate at NBIM.
Translation? London and Norway are thriving, while much of the EU is still paying for the disaster.
With energy prices still volatile, Norway is set to continue profiting from Europe’s woes—and the UK remains a top destination for reinvesting those billions.
Europe got exploited, bled dry, and is now locked out of the benefits of its own suffering. Meanwhile, Norway and London? They’re buying up the future—one prime real estate deal at a time.
