LGP purchases Alphington Road Retail Park in Exeter.
14 October 2013
Legal & General Property (“LGP”), on behalf of its Property Unit Trust, announces that it has purchased Alphington Road Retail Park in Exeter from DTZ Investment Management for £13.8 million. The freehold acquisition reflects a net initial yield of 7.47%.
The 59,587 sq ft retail warehouse scheme comprises three purpose-built units which are currently occupied by B&Q, Aldi and Iceland, and offer a weighted average unexpired lease term of 9.75 years. Located within close proximity to the City centre, on an arterial road that links to the A30, the B&Q store is the only DIY serving the central and southern areas of Exeter.
Matt Jarvis, Fund Manager to the Property Unit Trust at Legal & General Property, commented: “Currently undersupplied by retail warehousing space, Exeter is a good quality City with a wealthy catchment area. Ideally located close to the centre, the park is let to strong covenants and trades extremely well. We consider this high yielding, index linked asset a good match for our growing property portfolio.”
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 £950 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.
Savills acted for Legal & General Property and DTZ Investment Management was advised by CWM.
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.