Legal & General acquires Â£70m Marstonâ€™s Portfolio.
20 May 2013
Legal & General Property (“LGP”) announces that it has completed a sale and leaseback purchase of a portfolio of 27 Marston’s pubs for a total consideration of just under £70 million.
The properties are all let to Marston’s Plc (“Marston’s”) on long, RPI-linked, leases and have been purpose built for the pub/restaurant chain within the last seven years. Situated across the UK, they provide a good geographic spread, with 54% located in the South East, East Anglia and the South West, 32% in the Midlands and North of England, and 13% in Wales and Scotland.
The assets are all community or destination pubs, situated next to generators of high footfall, and are family-friendly and food-orientated in their offer, providing traditional fare at affordable prices in enduring locations. The properties are predominantly held freehold, with the remainder on long leasehold structures at peppercorn rents. Offering good EPC ratings across the portfolio, the buildings generally fall into category B.
Adam Kerr, Head of Long Income Transactions at Legal & General Property, said: “Let to a market leading pub operator, the portfolio acquisition not only offers good diversification, both by sector and geography, but also a secure, long-term income stream which is linked to RPI and therefore provides a good hedge against inflation.“
Savills advised Legal & General Property and Darren Moorhouse of DCLM Commercial Property acted for Marston’s.
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 £406bn of assets on behalf of more than 3,300 clients (31 December 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 £10.6bn as at 31 March 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 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:
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.