Valad Europe completes Â£18.5 million forward funding deal with Legal & General on behalf of longstanding joint venture with Stirling Council.
08 June 2012
Retail Park in Stirling will accommodate first Waitrose for Scotland outside of Edinburgh and Glasgow Valad Europe announces that Legal & General Property (“LGP”), on behalf of its UK Property Unit Trust, has agreed to forward fund Burghmuir Retail Park in Stirling, the development being undertaken by Stirling Development Agency (“SDA”), Valad’s 50/50 joint venture with Stirling Council.
With an end value of approximately £18.5 million, Burghmuir Retail Park will provide 58,900 sq ft of retail space over three units. Pre-lets have already been secured on the majority of the scheme and construction is due to commence shortly, with completion of works targeted for Q1 2013. The largest of the units, which will comprise 37,300 sq ft, is pre-let to the anchor tenant Waitrose on a 25 year lease. The middle unit is pre-let to TJX UK, which will trade as TK Maxx, on a ten year lease.
Situated in Stirling City Centre, with frontage and access to Burghmuir Road (A9), one of the principal arterial routes through the City Centre, the park is within easy reach of The Thistles Shopping Centre and will complement the existing retail offer in Stirling. Located at the heart of Scotland’s Central Belt, Stirling has a thriving economy and growing population.
Andy Richardson Valad’s Head of Scotland, commented: “With funding in place and the majority of units pre-let, we are looking forward to working alongside Legal & General Property to develop Burghmuir into a prime retail destination in the Stirling area. The finished development will provide an important boost to the local economy providing both new jobs and increased commerce on a site that was formerly a dilapidated industrial estate.”
Matt Jarvis, Fund Manager at Legal & General Property, added: “There is a distinct lack of funding available for development projects at present, with the banks having all but withdrawn from providing development finance. This is creating some fantastic investment opportunities for us, especially where projects are of high quality and backed by experienced investment partners such as Valad. LGP believes that funds such as the Property Unit Trust have a significant role to play in enabling these schemes to become a reality, whilst creating growth opportunities for our investors.”
Valad has a real estate team of 80 in the UK working out of its offices in Edinburgh, London and Leeds, where it manages a number of JVs and portfolios across its funds, including DUKE, V+UK, The Industrial Trust and The Advantage Property Income Trust.
Cushman Wakefield acted for LGP and Ryden advised SDA.
For further information about SDA and Valad, please contact:
Jeremy Carey, James Verstringhe, Tavistock Communications
Tel. +44 20 7920 3150
Louise Bathersby, Valad
Tel. +44 20 7659 6710 email@example.com
Notes to editors
About Valad Europe
Valad is a European multi-let real estate investment manager with a network of local offices throughout Europe, managing over €4 billion across 13 mandates.
In Europe, Valad manages 700 assets comprising approximately 6.2 million square metres. Its core business is value-adding real estate investment management with local asset management teams taking care of 6,500 tenant customers.
Valad has 220 staff and 22 offices in 12 countries across Europe.
Valad is an independent company owned by management and Blackstone, one of the world’s leading Real Estate Investment Managers, through their Blackstone Real Estate Partners VI L.P. fund, a US$10.9 billion (€7.5 billion) global real estate fund.
About Legal & General Property:
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 £347bn of assets on behalf of more than 3,300 clients (30 September 2011) 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 17 separate funds or vehicles and two segregated mandates with an aggregate asset value of over £10.4bn as at 30 September 2011.
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; 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 regeneration projects, including Bracknell, Northampton and Eastbourne.
Launched in 2006, the PUT has outperformed the Lipper Property IMA Sector peers over one, three, and five years. Benchmarked against the Lipper Property IMA and IPD Balanced Monthly Index Funds, its investment objective is to achieve income and capital growth through diversified investment in UK commercial property with a focus on property selection and active management within a research-driven risk/return framework for portfolio construction. The fund is highly regarded amongst consultants and advisors, and one of the very few property funds in the sector continuing to see steady inflow of capital from both Retail and Institutional investors.
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
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