L&G makes Senior Transactions hire and closes £4.1bn of deals
Legal & General announces that it completed over £4.1bn of property transactions in the UK market in 2014, investing approximately £3.6bn and disposing of circa £0.5bn, yet again making it one of the most active UK investors. Legal & General Property’s (LGP) transactions team has been further enhanced by the appointment of Senior Transactions Manager, Matthew Bird, joining the company from Frogmore and representing the third senior strategic hire made by the transactions team in a year.
Matthew brings with him over 14 years’ property experience, including nine years at UK private equity real estate fund manager, Frogmore, where he was responsible for originating and executing investment acquisitions and joint ventures. His appointment follows that of Senior Transactions Manager, Tom Roberts, who recently joined LGP’s transactions team from DTZ as well as Head of Residential, James Lidgate, who joined in March from Bellway Homes.
Taking a highly selective approach to investment opportunities, LGP continues to focus on occupier-led deals in less crowded parts of the market where its specialist in-house asset management platform can deliver value. In particular in 2014 LGP’s transactions team stood out for its ability to execute a number of very large and complex portfolio acquisitions working in collaboration with the wider LGP platform. Major deals included:
Project Hyperion – purchase of a portfolio of 55 assets let to RBS from Telereal Trillium for £550m, signifying one of the largest portfolio acquisitions to be successfully undertaken by a UK fund in recent years. L&G subsequently sold eight assets, realising a substantial trading profit for its shareholder fund.
Bishopsgate Unit Trust – £370m acquisition of a high quality portfolio of 24 commercial properties located across the UK and totalling over 1.5m sq ft. The deal reflected a net initial yield of 6.0%.
Places for People – £252m acquisition of a portfolio of over 4,000 housing units, let to Places for People Homes on a 50-year lease, allowing the housing association to finance a further 7,000 new housing units.
The Ocean portfolio – the £226.5m acquisition of a portfolio of 13 distribution warehouse parks and multi-let industrial estates located throughout the UK, representing a net initial yield of 6.5%.
Bill Hughes, Managing Director of Legal & General Property, commented: "Concluding £4.1bn of transactions in the past 12 months alone means that not only do we continue to be one of the most active UK property investors, but we have also continued to surpass our own strong track record of deal flow year on year. This has been achieved in part through the execution of creative, off-market deals and leading the way in the understanding of emerging sectors. For us, this is about strength of contacts and, above all else, quality over quantity."
NOTES TO EDITORS
Legal & General Property
Legal & General Property (LGP) forms part of the Real Assets division of Legal & General Investment Management (LGIM), which is responsible for the company’s direct investment capabilities in property and infrastructure. One of Europe’s largest institutional asset managers and a major global investor, LGIM manages £465bn in assets on behalf of over 3,100 clients (30 June 2014), providing products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 19 funds or vehicles with an aggregate asset value of £15.5bn (31 Dec 2014). These 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 asset 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.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.