LGP acquires Bechtel House in Hammersmith for Â£42.25m.
14 August 2012
Legal & General Property (LGP) today announces that, on behalf of its Managed Fund, it has acquired the freehold interest in Bechtel House, 245 Hammersmith Road, from CBRE SPUK III Limited for £42.25 million, reflecting a net initial yield of 9.8%.
Situated in the centre of Hammersmith, in the core office location and close to the main transport hub, Bechtel House is a headquarters office building and provides 164,343 sq ft over ground and eight upper floors. The asset is currently let in its entirety to Bechtel Limited on a lease expiring in 2014. The construction engineering company has occupied the building since it was developed in the early 1980s and currently pays a passing rent of £4,382,954 per annum. Undertenants include Accor UK Business & Leisure Hotels Limited, UK Channel Management Limited and Virgin Media Limited.
Mark Russell, Fund Manager at Legal & General Property, comments: “We are delighted to have concluded the purchase of Bechtel House – an asset which replenishes the added value pipeline of the Managed Fund following the successful execution of asset plans elsewhere in the portfolio.
“The Hammersmith office market is home to many international companies and benefits from excellent transport connections and infrastructure. The limited office availability continues to create upwards pressure on rents and this opportunity provides us with numerous options for value enhancement through the engineering of existing leases or through the undertaking of a major refurbishment project - activities at which our strong asset management platform is highly adept.”
Tudor Toone acted for LGP and CBRE acted for CBRE SPUK III Limited.
Notes to editors
Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages approximately £381bn of assets on behalf of more than 3,300 clients (30 June 2012) and provides products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 16 separate funds or vehicles and two segregated mandates with an aggregate asset value of £10.4bn as at 30 June 2012.
These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment 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; LPI Income Property Fund and the Hybrid Property Fund.
LGP’s UK-focused fund management platform has built and retained a strong track record of outperformance 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, leveraging upon the
significant resources provided by the wider LGIM platform. Sector specialists cover each sphere of the
market and are supported by LGP’s market-leading research capability.
LGP’s sector specialisms 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 its high profile Covent Garden scheme, Agar Street, as well as significant town-centre retail regeneration projects, including Bracknell, Northampton and Eastbourne.
For more information please contact:
PR Manager, Legal & General Capital and Real Assets, LGIM (Property, infrastructure and alternative finance)
t: + 44 (0) 203 124 2777
m: + 44 (0) 7718 395 279
About Legal & General
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.