LGP completes sale of Fremlin Walk to M&G Real Estate.
24 November 2014
Legal & General Property (“LGP”) announces, on behalf of its UK Property Income Fund (“UK PIF”), that it has successfully completed the sale of Fremlin Walk in Maidstone to M&G Real Estate for £110m, reflecting a net initial yield of 6%.
Acquired by LGP in December 2010 for £91.6 million, reflecting a net initial yield of 7.61%, Fremlin Walk is an open air shopping centre comprising 350,000 sq ft of modern retail space and a 760-space car park. Anchored by an 100,000 sq ft House of Fraser Department store, the site comprises 49 units in total, let to a number of leading national brands including Superdry, Zara, H&M, Boots, Top Shop, Fat Face, Waterstones and Costa Coffee. The sale excludes 66 Earl Street which has already been sold separately to a private individual for £275,000.
Reaching its final close at the end of 2011, having secured a total of £300 million of equity from 14 major international institutional investors, UK PIF, like its successor fund, UK PIF II, is characterised by its highly innovative debt structure which enables both geared and ungeared subscriptions, providing investors with flexibility to select their optimal appetite for debt. Seeking to generate strong returns through careful stock selection, both funds are focussed on properties with strong income streams and the opportunity to capitalise on LGP’s strong asset management track record and sector specialist skill set.
Charlie Walker, Fund Manager of UK PIF and UK PIF II, comments: “The UK PIF strategy is all about strength of income and Net Operating Income growth, and Maidstone has delivered for us on both counts. Through creative active management we have moved rents onwards from £90 per sq ft to £120 sq ft Zone A, delivering new fascias along with a strengthened footfall and scheme turnover. Maidstone’s shoppers are clearly happy, as too are our investors.”
CBRE acted for LGP, while Cushman & Wakefield represented M&G Real Estate.
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 £465bn in assets on behalf of over 3,100 clients (30 June 2014) and provides products and solutions spanning all asset classes. LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £14.5bn as at 30 September 2014. These funds include:
Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund
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
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance. Owing to its size, diversity and penetration, it benefits from best-in-class banking and property 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 the significant resources provided by the wider LGIM platform. Protecting the medium to long term value of its portfolio, as a leader in sustainability, green principles are embedded into every property and investment decision.
Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. In particular, the Company has a major development platform, responsible for delivering community-focused projects ranging from West End landmark buildings to significant town-centre retail and leisure regeneration schemes.
Forming part of the Group’s larger UK housing and infrastructure investment strategy, LGP also continues to participate in a growing range of supply side housing activities, including financing affordable homes, the house building sector, urban regeneration, student accommodation and care homes.
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.
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Registered in England 2091897.