LGP Acquires Travelodge and Retail Investment in Centre of High Wycombe.
13 June 2014
Legal & General Property (“LGP”) announces, on behalf of its Linked Pensions Fund, that it has purchased a recently developed Travelodge hotel and three retail units located in the centre of High Wycombe from McLaren Property for a total consideration of £11,005,000, reflecting a net initial yield of 6.8%.
Occupying a prominent site in High Wycombe’s central retail area, the property is located immediately adjacent to one of the busiest entrances of the town’s main shopping centre, the Eden Centre, on White Hart Street. Comprising a part new build, part refurbished, mixed-use development, the asset is arranged with three retail units on the ground floor and a 120 bedroom Travelodge hotel occupying a ground floor lobby and the five storeys above.
The hotel is let to Travelodge on a FRI lease for a term of 25 years, expiring in November 2036, with Travelodge Hotels Limited accountable for 73% of the total passing rent on the property. One of the retail units is vacant, while the other two are let to Sports Direct and Sassy & Co Hair & Beauty, until September 2022 and May 2022, respectively.
Will Edwards, Fund Manager of the Linked Pensions Fund at Legal & General Property, commented: “This transaction is in line with Fund strategy as it offers increased exposure to index-linked rental growth in an alternative asset class. The property provides the Linked Pensions Fund with an excellent opportunity to acquire a hotel on a long secure lease at a sensible yield. Furthermore, it is well located in High Wycombe where there is an interesting supply/demand dynamic.”
John Gatley, Managing Director of McLaren Property, said: ”We are delighted with this sale to Legal & General which concludes the first phase of our project in High Wycombe. We are currently working up plans for a second phase comprising an office-led mixed-use scheme which forms part of the council’s vision for the town centre masterplan.”
Montagu Evans acted for McLaren and LGP was advised by Strutt & Parker.
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.