LGP completes sale of John Lewis warehouse in Enfield.
04 January 2013
Legal & General Property (LGP) announces, on behalf of its Managed Fund (the Fund), that it has sold the freehold interest in an industrial warehouse unit on Innova Park in Enfield to clients of Norton Newman. The sale was secured for a total consideration of £11.4 million, representing a net initial yield of 5.49%.
The Fund purchased the property by way of a pre-let forward funding deal in December 2009. Practical completion occurred in September 2010 and a new 20 year lease to John Lewis plc commenced simultaneously. The 84,620 sq ft warehouse/office unit achieved a BREEAM ‘very good’ rating through collaboration between the developer and ultimate occupier.
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 contracts, and has a focus on income enhancement and added value creation.
Mark Russell, Fund Manager to the Managed Fund at Legal & General Property, commented:
“This well let, quality warehouse asset provides a defensive profile for which there exists good investor demand. The sale proceeds will be redeployed into other attractive market opportunities offering the potential for enhanced returns, accessible via LGP’s strong in-house asset management capabilities."
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 £381bn of assets on behalf of more than 3,300 clients (30 June 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 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.