Legal & General’s Principal Balance Sheet Businesses Accelerate Real Estate Disposals: £1.1bn Transaction Volume in 2017 To Date.

24 October 2017

Legal & General’s real asset strategy combines skillsets and portfolios in LGC and LGR, alongside LGIM Real Assets.  Legal & General’s principal balance sheet businesses, Legal & General Capital (LGC) and Legal & General Retirement (LGR), have executed a record £1.1bn of real asset disposals in 2017 to date, of which approximately £1bn has been to international investors.  Legal & General’s share of gross proceeds from these transactions has been £526m.

Legal & General Retirement’s (LGR’s) recent sale of 70 Gracechurch St delivered gross proceeds of £272m as part of its active management of the asset portfolio backing its annuity liabilities.

In addition, Legal & General Capital (LGC) generated gross proceeds of £254m from transactions with a gross value of £817m (see table below).  All full asset disposals met or exceeded targeted returns of 10-12% IRR.

 

Transaction

Gross proceeds

(£m)

Ownership share (%)

LGC share of gross proceeds

(£m)

Cardiff – 1 Central Square

51.0

100.0

51.0

Cardiff – 2 Central Square

56.5

n/a

38.0

Piccadilly, London

52.0

100.0

52.0

Bracknell Car Park

39.7

50.0

19.9

Arlington Business Parks Partnership

443.2

7.8

33.9

Bishopsgate Property Fund*

84.9

25.0

21.2

Access Development Partnership*

22.0

50.0

11.0

NTR Wind 1 LP*

29.8

47.5

14.1

Pemberton Funds*

37.8

n/a

13.0

TOTAL

816.9

 

254.2

 *Partial sale / distribution

 

Proceeds are being reinvested alongside other Legal & General funds in our substantial UK regeneration programme.  Many UK cities and towns are regenerating themselves successfully in partnership with Legal & General.

The successful LGR/LGC business model, established four years ago, is now at a point in its development where investments can either be manufactured within the business to suit specific needs or recycled into new opportunities.

Nigel Wilson, Legal & General CEO said: “Strong demand from international buyers demonstrates that the UK is a great place to invest. Having invested £12bn to date, we are on track to invest £15bn of long-term capital in UK housing, urban regeneration, clean energy and business growth.”

 

FOR FURTHER INFORMATION:

Media:

Deborah Goodier, Communications Director, Legal & General Retirement, 020 3128 1299

Olivia Bayliss, Head of Communications, Legal & General Capital and LGIM Real Assets, 020 3124 2777

Investors:

Laura Doyle, Head of Investor Relations, 020 3124 2088

 

Legal & General Group Plc: 

Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £16bn (as at 23 Oct 2017) and is responsible for investing £951bn worldwide (as at 30 June 2017) on behalf of investors, policyholders and shareholders.

For more information on Legal & General, please see http://www.legalandgeneralgroup.com/