Legal & General acquires Sainsburyâ€™s supermarket in Hayes from Aviva for Â£72.5m.
03 May 2013
Legal & General Property (“LGP”) announces that it has purchased a Sainsbury’s supermarket in Hayes in West London, from Aviva Investors for a total consideration of £72.5 million.
Located on Lombardy Retail Park off Coldharbour Lane in Hayes, the property comprises a 104,473 sq ft supermarket and 14-pump petrol station. It is let to Sainsbury’s on a 115-year lease, with 27 years remaining until first break and is subject to RPI-linked rental uplifts.
Philip Nell, Head of Retail Property Funds at Aviva Investors, commented: “Having acquired the asset in January 2010, this was an opportunity for us to capture some strong performance from what is a well-let, well-located supermarket with extensive parking provision on an excellent retail park.”
Adam Kerr, Head of Long Income Transactions at Legal & General Property, said: “This acquisition provides us with a long let asset secured against an investment grade covenant, which also benefits from RPI-linked rental uplifts, enabling us to deliver our fund strategy of securing long term income streams which provide a good hedge against inflation. Sainsbury’s is one of the leading foodstore operators in the UK and furthermore provides diversification for the fund being the first to be added to its portfolio.”
James Watson, Head of Investment at BCL added: “The bond-like characteristics of these investments have made them very popular with investors looking to invest directly rather than in bonds themselves. Last year, more than £1bn of supermarket assets was traded and 90% of these were bought by funds.”
Briant Champion Long advised Aviva. JLL acted for Legal & General Property.
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 2013.
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.