Norges moves up on rival Sammy Tak Lee after upping its stake in Shaftesbury Group

Norges Bank Investment Management (NBIM) has upped its holding in West End landlord Shaftesbury for the second time in a fortnight, escalating a power tussle between the sovereign wealth fund and rival shareholder Sammy Tak Lee.

The Norwegian fund increased its holding in the FTSE 250 group from 22 per cent to 23.15 per cent today, edging closer to the 25 per cent stake owned by Hong Kong billionaire property developer Sammy Tak Lee.

Earlier this month Norges, which has investments in areas of the West End including parts of Oxford Street and Saville Row, bought another one per cent stake in the £2.7bn company.

The move reflects a growing battle for control of the property group, which owns large swathes of the West End, including much of Carnaby Street and China Town.

In February Norges bought out the 8.2 per cent stake owned by Invesco, taking its ownership up to more than 20 per cent.

Such a stake means that Norges would be able to prevent Sammy Tak Lee from de-listing the company if he made a bid for it in the future.

Speculation that the property mogul will try to buy Shaftesbury has swelled in the last 12 months, with Lee ramping up his own stake in the company amid the falling price of sterling.

Lee, who is understood to be the only major shareholder of Shaftesbury who has not gone on a tour around the company’s portfolio, has previously clashed with the Shaftesbury board on the thorny issue of shares, with the tycoon voting down resolutions to authorise shareholders to have the option of raising fresh capital over the year, in a move that could have diluted Lee’s ownership.