Legal & General’s Principal Balance Sheet Businesses Accelerate Real Estate Disposals: £1.1bn Transaction Volume in 2017 To Date

Legal & General Capital (LGC) and Legal & General Retirement (LGR), have executed a record £1.1bn of real asset disposals in 2017 to date, of which approximately £1bn has been to international investors.

Legal & General’s real asset strategy combines skillsets and portfolios in LGC and LGR, alongside LGIM Real Assets.  Legal & General’s principal balance sheet businesses, Legal & General Capital (LGC) and Legal & General Retirement (LGR), have executed a record £1.1bn of real asset disposals in 2017 to date, of which approximately £1bn has been to international investors.  Legal & General’s share of gross proceeds from these transactions has been £526m.

Legal & General Retirement’s (LGR’s) recent sale of 70 Gracechurch St delivered gross proceeds of £272m as part of its active management of the asset portfolio backing its annuity liabilities.

In addition, Legal & General Capital (LGC) generated gross proceeds of £254m from transactions with a gross value of £817m (see table below).  All full asset disposals met or exceeded targeted returns of 10-12% IRR.

Transaction Gross proceeds (£m) Ownership share (%) LGC share of gross proceeds (£m)
*Partial sale / distribution
Cardiff – 1 Central Square 51.0 100.0 51.0
Cardiff – 2 Central Square 56.5 n/a 38.0
Piccadilly, London 52.0 100.0 52.0
Bracknell Car Park 39.7 50.0 19.9
Arlington Business Parks Partnership 443.2 7.8 33.9
Bishopsgate Property Fund* 84.9 25.0 21.2
Access Development Partnership* 22.0 50.0 11.0
NTR Wind 1 LP* 29.8 47.5 14.1
Pemberton Funds* 37.8 n/a 13.0
Total 816.9   254.2

Proceeds are being reinvested alongside other Legal & General funds in our substantial UK regeneration programme.  Many UK cities and towns are regenerating themselves successfully in partnership with Legal & General.

The successful LGR/LGC business model, established four years ago, is now at a point in its development where investments can either be manufactured within the business to suit specific needs or recycled into new opportunities.

Nigel Wilson, Legal & General CEO said: “Strong demand from international buyers demonstrates that the UK is a great place to invest. Having invested £12bn to date, we are on track to invest £15bn of long-term capital in UK housing, urban regeneration, clean energy and business growth.”

For further information:

Media

Deborah Goodier

Deborah Goodier

PR and Communications Director

Individual Retirement and Pension Risk Transfer

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Olivia Bayliss

Olivia Bayliss

Head of Communications

Capital and LGIM Real Assets

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Investors

Laura Doyle

Laura Doyle

Head of Investor Relations

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Notes to editors

Legal & General Group Plc: 

Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £16bn (as at 23 Oct 2017) and is responsible for investing £951bn worldwide (as at 30 June 2017) on behalf of investors, policyholders and shareholders.

For more information on Legal & General, please see http://www.legalandgeneralgroup.com/

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