L&G acquires three properties from British Land for £219m
Legal & General Property ("LGP") announces, on behalf of its Managed Property Fund, that it has completed the off-market purchase of three properties from British Land for a total consideration of c.£219m.
The assets comprise the House of Fraser department store in Birmingham (trading as Rackhams), Kingswood Retail Park in Hull and Grenfell Island - an office and leisure asset in Maidenhead. Concluded as a corporate transaction, the overall purchase price was c.£219m, which reflects a blended net initial yield of c.6.3%.
Mark Russell, Senior Fund Manager of the Managed Property Fund, comments: ”We are very pleased to have successfully concluded this important transaction with British Land. The assets acquired provide a long-term income stream which is supported by a high quality tenant line up. There are numerous opportunities to enhance value in the short and medium-term and forthcoming infrastructure improvements to Maidenhead and Birmingham will further enhance these asset fundamentals without cost to our investors.”
The £2.2bn Managed Property Fund was launched in June 1971 and is an open-ended Fund available to occupational pension schemes. It has outperformed the AREF / IPD UK Quarterly All Balanced Property Funds Index over three and five year periods.
LGP was advised by Knight Frank, Morgan Williams and CBRE.
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For further information, please contact:
PR Manager, Legal & General Property
020 3124 2777
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 third 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 October 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.