LGP funds Canterbury Christ Church University student accommodation scheme.
11 November 2013
Legal & General Property (“LGP”) announces that it has agreed to forward fund the development of an 193-bed student accommodation scheme pre-let to Canterbury Christ Church University (“CCCU” / the “University”) for a total consideration of £15.7 million, reflecting a net initial yield of 5.14% (after purchase costs). As one of the most active investors in the sector, this deal represents LGP’s eighth major university-backed acquisition so far and fourth in 2013.
Located close to the historic City wall and Canterbury’s main bus station, the property is situated immediately behind CCCU's new library and student services building. Comprising 193 en-suite rooms arranged over two blocks, the development will be delivered by September 2015, in time for the start of the academic year, and will be let to the University on a 25 year lease, with annual RPI linked uplifts.
With strong sustainability credentials, the development is seeking a BREEAM “Excellent” rating. The construction will be carried out by Petros, who started on site this month and is targeting a Spring 2015 completion. LGP has acquired the site on a freehold basis.
CCCU originated as a teacher training college in 1962 and has since grown into a university with a full range of courses and an active engagement in a wide variety of research. Today, the multi-campus university accommodates 20,000 students and is the South East of England’s largest provider of courses for public services careers, as well as one of the best in the country for initial teacher training.
Other recent transactions this year have included those backed by Newcastle University, Aberystwyth University and University of the Arts London, with Legal & General having committed a total of over £750 million to the student accommodation sector in the last few years, including two lending deals.
Derek Gilby, Senior fund manager at Legal & General Property, comments: “LGP continues to be one of the most active investors in the student accommodation market, seeking out rare off-market opportunities to invest in high quality schemes that are backed by A rated University covenants on long lease terms. Furthermore, the property’s central location, adjacent to CCCU’s new library and student services facility, provides security with regard to the long term income and underlying value of the property.”
Baker Pugh McLean advised Legal & General Property.
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.
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About Legal & General
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.