17 Aug 2017
Legal & General acquires Liverpool's India buildings for next major Government hub
LGIM Real Assets (Legal & General) has secured a major pre-let with The UK Government following its acquisition of India Buildings in Liverpool from Shelborn Asset Management.
The letting will see HMRC become one of the largest employers in the city, helping to facilitate significant economic growth in the northwest city.
The UK Government has taken a 25 year lease for around 270,000 sq ft of office space at the landmark building, and will occupy 10 floors. Staff will be moving in from 2019. India Buildings is in the centre of Liverpool with excellent access to transport links and good digital infrastructure. Around 3,500 HMRC staff will be based in the building, which will become one of its state-of-the-art regional centres.
This latest deal is Legal & General’s third forward funding agreement with the UK Government. HMRC has already signed a 107,000 sq ft pre-let at Salmon Harvester Properties' 3 Glass Wharf in Bristol city centre as well most recently signing for 265,976 sq ft of office space at Legal & General and Rightacres’ Central Square scheme in Cardiff.
Legal & General has acquired India buildings on behalf of its LPI Income Property Fund. The developer is Marwees India Buildings with Shelborn Asset Management acting as the development manager. Knight Frank acted for Marwees India Buildings and Shelborn Asset Management, while Mason Owen acted for Legal & General on this transaction.
The LPI Income Property Fund Launched in 2010 and offers Defined Benefit pension schemes an innovative way to invest in direct property with secure, primarily public sector backed, inflation-linked sources of income. The portfolio generates income yields well in excess of those from comparable asset classes such as index-linked gilts or social housing.
Adam Kerr, Head of Annuity Transactions, LGIM Real Assets, said: “This is one of the largest ever office lettings in the north of England and continues the trend of significant investments in Liverpool which has lead the renaissance of the city over the last 10 years. We are proud to have played our part in securing this investment which will make a meaningful impact on the regeneration of this area of the city, helping to create social and economic growth through the creation of jobs and breathing new life into this heritage asset. At LGIM Real Assets we have a commitment to improving our UK cities for the better and it is exactly this type of deal that can be a catalyst for change.”
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LGIM Real Assets
LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £902bn in assets on behalf of over 3,200 clients (as at 31 December 2016), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £23.2bn (as at 31 December 2016), actively investing and managing assets across commercial property, private residential, infrastructure and property lending and, most recently, corporate credit.