Legal & General acquires the pendragon portfolio.
30 August 2013
Legal & General Property (“LGP”) announces, on behalf of its UK Property Unit Trust (“PUT”), that it has purchased the Pendragon portfolio of nine car showroom investments from Hermes Real Estate Investment Management Limited (“HREIML”) for a total consideration of £40 million, representing a net initial yield of 6.33%.
The portfolio is let to Pendragon Plc and benefits from an average unexpired lease term of over 15.5 years. Pendragon Plc is Britain’s biggest franchised motor dealer group, based on turnover and volume of dealerships. Its two main brands are Stratstone, which focuses on luxury cars and motorcycles, including Ferrari, Honda, Land Rover, Maserati, Mercedes-Benz and MINI, and Evans Halshaw, which is the largest volume car retailer in the UK, and includes brands such as Vauxhall, Ford, Nissan and Renault. Situated across the UK, the portfolio includes locations such as Bedford, Glasgow, Edinburgh and Leeds.
Matt Jarvis, Fund Manager of the PUT at Legal & General Property, comments: “With assets situated in key geographic territories and benefiting from good levels of prominence, the purchase of this portfolio is closely in line with the Fund’s strategy to acquire well located, high quality assets which offer secure income returns over the medium term. The showrooms are dedicated to serving strong and profitable manufacturer brands, such as Land Rover and Mercedes Benz, and therefore, in our opinion, offer enduring appeal, as well as offering the Fund diversification into a new sub-sector.”
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.
Growing from £100 million to circa £890 million since its inception, 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.
GVA and FSP advised LGP, and Tudor Toone and Automotive Property Consulting represented HREIML.
Notes to editors
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 £433bn in assets on behalf of more than 3,100 clients (30 June 2013) 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 £11bn as at 30 June 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 West End landmark building, Central Saint Giles, and Agar Street, its high profile Covent Garden office scheme, amongst others, and is currently involved in bringing forward a number of significant town-centre retail and leisure regeneration projects, including Bracknell, Trowbridge, Northampton and Eastbourne.
Legal & General Property Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091897.
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.