L&G sells London residential development scheme to Stonehaven Group
Legal & General Property (“LGP”) announces, on behalf of its Linked Pensions Fund (the “Fund”), that it has completed the long leasehold sale of the upper floors of Dudley House, Southampton Street and 388/389 Strand, London, WC2 to The Stonehaven Group for approximately £19 million.
The sale follows the completion of a successful asset management initiative whereby LGP secured vacant possession of the upper floor office accommodation and obtained planning permission to change the use from office to residential. The property now has consent to create 18 residential units comprising of one, two and three bed apartments. LGP retains the freehold and the ground floor of the property, which will be reconfigured to create 7,055 sq ft of new retail and leisure space in an area where there is limited supply.
The asset is well located in central London, occupying a prominent corner position on the north side of the Strand at its junction with Southampton Street and is situated midway between Trafalgar Square and Aldwych.
Will Edwards, Fund Manager of the Linked Pensions Fund at LGP, said: “The sale of the upper floors of this property to Stonehaven crystallises returns for our investors and is testament to our asset management capabilities. The disposal will now allow the Fund to focus on creating and letting the proposed reconfigured retail and leisure space on the ground floor which, once completed, will deliver strong income returns for the Fund.”
Stephen Shaw, Director of Stonehaven Homes, added: “We are delighted to have secured this acquisition from LGP in the heart of Central London, as the latest addition to Stonehaven's growing London development portfolio. The residences at Dudley House, Southampton Street, will be a fine addition to one of Covent Garden’s most prestigious addresses, providing a new lease of life for the stunning existing buildings.”
CBRE advised LGP on this transaction.
For further information, please contact:
PR Manager, LGIM Real Assets
Tel: 020 3124 2823
Head of Communications, Legal & General Capital / Real Assets (LGIM)
Tel: 020 3124 2777
Notes to editors:
LGIM Real Assets:
LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £717bn in assets on behalf of over 3,100 clients (30 September 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has an aggregate asset value of £19.9bn (30 September 2015) and is responsible for the division’s direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.
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 £17.5bn (30 September 2015). These funds include:
- Balanced Funds
- 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.
LGIM Infrastructure has concluded 14 debt investments to date across all key infrastructure sectors and has a total AUM of around £1bn.
CLL has now invested a total of over £1.5bn across 18 deals. Transactions include eight loans to the social housing sector, two loans to the student accommodation sector, two hotel debt deals and two loans to the care home market.