LGP Acquires Union Plaza in Aberdeen for C.Â£55m.
09 January 2014Legal & General Property (LGP), on behalf of its Managed Property Fund, is pleased to announce that it has completed the acquisition of Union Plaza in Aberdeen from The Union Plaza Limited Partnership, a wholly owned subsidiary of the Stewart Milne Group, for a total consideration of £54.82m. The purchase price reflects a net initial yield of 6.3%.
Completed in 2008, Union Plaza is a grade A, multi-let office building comprising 122,012 sq ft of office accommodation arranged over ground and six upper floors. 224 car spaces in a two-storey secure underground parking facility offers one of the most attractive parking ratios in the city centre.
Situated on Union Wynd in a prime city centre location, it is close to Union Street, Aberdeen’s principal retailing thoroughfare and benefits from easy access to the city’s retail and leisure offer, as well as its railway and bus stations. The building is currently multi-let to eight different tenants on 10 leases, with a weighted average unexpired lease term of 9.2 years.
Mark Russell, Senior Fund Manager at Legal & General Property, said: “This acquisition presents us with an increased exposure to growth from rising rental values. The strength of Aberdeen's economy and its bias to the energy sector provides a strong platform for continued investment. We expect the consequential growth of the city and the businesses located there to offer opportunities to drive rents on the best space, and Union Plaza is well positioned in this regard.”
Knight Frank advised LGP and CBRE represented the vendor.
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 £443bn in assets on behalf of more than 3,100 clients (30 September 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 £11.6bn as at 30 September 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.