Legal & General Property acquires One Whithall Quay for Â£14.38m.
12 May 2011
Legal & General Property (“LGP”) announces it has acquired One Whitehall Quay in Leeds for its UK Property Unit Trust Fund (“the Fund”) from Britannia Invest A/S for £14.38 million. The purchase price reflects a net initial yield of 7.88%.
The 51,182 sq ft office building is currently let to Mercer Ltd and MWB Business Exchange Centres Ltd on an unexpired lease term of 6.25 years and represents the largest multi-let office investment transaction in Leeds in the last year. The passing rent is £1,197,500 per annum which equates to £21 per sq ft reflecting a 20% discount to prime rents in Leeds and offering good scope for future growth.
Established just over five years ago, the Fund has continued to receive strong investor support in the early part of 2011 with the AUM of the Fund rising for the first time to exceed £500 million. Investing in the UK commercial retail estate market, the Fund’s strategy is to provide long term capital growth by focusing on property selection and active asset management.
Matt Jarvis, Fund Manager, Property Unit Trust, comments:
“Acquired at an attractive yield, One Whitehall Quay represents an excellent opportunity for value add asset management initiatives. We intend to reposition the property over the medium term with a view to creating one of the key Grade A offices in Leeds city centre. This transaction is in line with the Fund’s long term preference for town centre office properties and we continue to seek similar opportunities.”
Jones Lang LaSalle advised on this acquisition.
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Notes to editors
Legal & General Property
Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM) and one of the largest institutional property fund managers in the UK. LGIM had funds under management of over £356bn as at 31 March 2011, whilst LGP manages or co-manages 16 separate funds or vehicles and 2 segregated mandates, with an aggregate asset value of over £9.8bn as at 31 December 2010. These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment Fund; UK Logistics Fund; Arlington Business Parks Partnership; and the English Cities Fund
Single Asset Vehicles
Bracknell Regeneration Partnership; Central Saint Giles Partnership; Performance Retail Limited Partnership and Warrington Retail Limited Partnership
Life Fund; Linked Pensions; Linked Life; Managed Fund; Property Unit Trust, UK Property Income Fund; and LPI Income Property Fund.
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance across the sector. Owing to its size, diversity and penetration, it benefits from best in class banking and property industry contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities. Taking a client-centric approach, the business places the highest priority upon integrity and transparency. Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability.
LGP’s sector specialism’s cross all facets of the real estate market. In particular, the Company has a major development platform, responsible for delivering the West End office market’s latest landmark, Central Saint Giles, and currently involved in developing two further high profile London schemes, Walbrook Square and Agar Street, as well as significant town-centre retail regeneration projects, including Bracknell, Northampton and Eastbourne.
For more information please contact:
PR Manager Investments
t: +44 (0) 2031 242096
About Legal & General
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.