Press releases

LGP forward funds student accommodation in Southampton.

29 October 2012

Terrace Hill, a leading UK property development and investment group, announces that its joint venture with Osborne (the “JV”) has exchanged conditional contracts with Legal & General Property (“LGP”) for the forward funding and sale of its 1,104 unit student accommodation development in Southampton city centre.  Further details will be provided when the transaction has completed. 

The scheme is well located in the City centre with good access to transport links and is pre-let in its entirety to the University of Southampton on a 38 year lease, having received planning consent from Southampton City Council in July 2012. Construction is scheduled for completion in summer 2014. 

The property will be arranged over three towers, ranging from eight to 16 storeys high, positioned around a central piazza.  In addition to the student accommodation, the scheme includes a shop, café, gym and learning centre at ground level.  

Philip Leech, Chief Executive of Terrace Hill, commented: “Our student accommodation development at Mayflower Plaza is an extremely attractive, high quality scheme in a city with a large student population, let to a very strong tenant in the University of Southampton on a long lease. These factors underline the institutional quality of the asset, which has allowed us to secure the forward funding and sale of the property to Legal & General Property.”

Gordon Aitchison, Director of Investment and Development at Legal & General Property, said: “In line with our fund objective to acquire long let, index-linked assets with investment grade covenants, this transaction provides us with a secure long term income stream that is hedged against inflation.  Furthermore, representing our third major funding of student accommodation this year, it demonstrates our growing appetite to look to alternative sectors as attractive investment opportunities and the increasing role that the private sector will play in funding critical social infrastructure.” 

The JV was advised by DTZ and Strutt & Parker. Legal & General Property was advised by Knight Frank.

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

Balanced Funds
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 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, 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 and leisure regeneration projects, including Bracknell, Trowbridge, Northampton and Eastbourne.

For more information please contact:

Olivia Goodall
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

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