LGP acquires three Uxbridge assets.
15 May 2013
Legal & General Property (“LGP” / the “Company”) announces, on behalf of its Managed Fund, that it has purchased three office assets in Uxbridge, let to Xerox, for a total consideration of over £34 million, reflecting a blended net initial yield of circa 8.7%.
LGP has simultaneously acquired the freehold interests in Riverview & Waterside from Irish Life Assurance and the adjoining Bridge House from Canada Life Assurance. All buildings are located on Oxford Road on the western edge of Uxbridge town centre, in a well-established commercial area. The properties are let to Xerox on co-terminus leases which expire in 2017.
Built in 1970 and subsequently refurbished in 1998, Bridge House comprises 78,675 sq ft of office space arranged over a ground and five upper floors. Riverview and Waterside were constructed more recently in 1999 and are arranged as two three-storey, self-contained buildings, providing 34,256 sq ft and 33,631 sq ft of office space respectively.
Launched in June 1971, the Managed Fund is an open-ended fund available to occupational pension schemes that invests in UK freehold and leasehold property, recognising that superior stock selection is key to out-performance. The Fund is low-medium risk with the capability to invest in indirect, unlisted vehicles, and All Property Total Return swap and futures contracts, and has a focus on income enhancement and added value creation.
Mark Russell, Fund Manager at Legal & General Property, commented: “We consider Uxbridge to be extremely well positioned to benefit from occupier spill over from central London. The amenity and connectivity of the town has proven to be popular with the larger corporates, and we expect demand to increase with consequential upwards pressure on rents. This purchase further enhances our asset management pipeline, whilst also delivering an attractive income return over the short to medium term.”
Gerald Eve acted for LGP, Doherty Baines advised Irish Life Assurance and Savills represented for Canada Life.
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.