Legal & General forward funds university of arts student accommodation development.
04 January 2013
Legal & General Property (LGP) announces that it has agreed to forward fund a student accommodation scheme in Finsbury Park, London, for a total consideration in excess of £57 million.
The development is pre-let to the University of Arts London (UAL) on a 25-year FRI lease from completion, with annual RPI reviews capped at 5% and floored at 1%. Situated very close to Finsbury Park station, the scheme will comprise 475 en-suite cluster rooms and studio rooms, as well as café areas and bike storage facilities.
Construction is due to start early this year, with completion scheduled for August 2015 making it ready for occupation at the beginning of that academic year. The property has been designed to achieve a BREEAM rating of Excellent and includes green roofs amongst other sustainable features.
With over 18,500 students from 114 countries, UAL is the largest specialist arts and design university in Europe, with a ratio of six applications for every place offered. It is made up of six distinctive colleges, which are Camberwell College of Arts, Central St Martins College of Art & Design, Chelsea College of Art & Design, London College of Communication, London College of Fashion and Wimbledon College of Art.
Gordon Aitchison, Director of Investment and Development at Legal & General Property, comments: “This represents the fourth significant funding deal pre-let to a major university that has been undertaken by LGP in the last 18 months, following similar deals with Imperial College, the University of Southampton and the University of Greenwich. This sector offers our funds the opportunity to invest in index-linked income on very long leases to strong covenants, whilst also providing relatively higher yields than the traditional real estate sectors. Our focus remains on funding quality developments that are backed by premium universities and located in first class locations.”
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 £391bn of assets on behalf of more than 3,300 clients (30 September 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 September 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
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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