L&G Secures Middlesbrough Leisure Park.
04 March 2014
Legal & General Property (“LGP”), on behalf of its Leisure Fund, announces that it has purchased Middlesbrough Leisure Park in Middlesbrough from Highpoint Estates for £21.25 million, reflecting a net initial yield of 6.9%.
Providing the only dedicated leisure offer within Middlesbrough town centre, the park comprises an 11-screen Cineworld cinema, a two level gym complex, four restaurants and a retail unit, arranged over 109,856 sq ft of floor space. Occupying a prime position on the edge of Middlesbrough town centre and fronting the A66, the park also offers extensive car parking, with a total of 715 spaces. Current tenants include DW Sports, Nandos, McDonalds, Pizza Hut, American Golf and Subway. Generating an annual rental income of £1.54 million, the property has an average weighted unexpired lease term of over 12 years.
Andrew Ferguson, Head of Leisure at Legal & General Property, comments: “In line with the Fund’s investment strategy, the acquisition of this well located, multi-let leisure park demonstrates strong property fundamentals, backed by consistently solid tenant trading performance. Furthermore, it offers an attractive income return and the potential to drive rental growth through longer term asset management initiatives.”
Formed in 2002, the Leisure Fund is held through a Jersey Property Unit Trust and, following this latest acquisition, has approximately £350 million of assets under management, comprising 10 prime leisure assets, occupying dominant positions across the UK.
Over the 12 months to December 2013, the Fund delivered a strong performance of 10.9% to its institutional investors, which compares very favourably to the IPD Specialist Funds index which generated 8.5%. Furthermore, it is the third best performing fund in the IPD Pooled Property Funds Index over the past 10 years and with a total average performance of 8.5% per annum this is over 5.2% per annum ahead of the IPD Specialist Funds index.
Savills advised Legal & General Property on the transaction and Highpoint Estates represented itself.
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.