4 Jan 2018
Legal & General snaps up Glasgow law court as LPI fund tops £1 billion
LGIM Real Assets (Legal & General) announces that it has acquired Atlantic Quay 3, the central Glasgow Scottish court and tribunal building, from the Moorfield Group for £50 million.
Legal & General has bought the asset on behalf of its LPI (Limited Price Inflation) Income Property Fund (the “Fund”) bringing its investment portfolio to £1.1 billion.
Atlantic Quay 3 is a 79,500 sq ft Grade A modern office building. It is fully let on a 25-year lease to the Scottish Courts and Tribunals Service. Based in the heart of Glasgow’s International Financial Services District, the property sits in a prime riverside location and is just a short walk from Glasgow’s main shopping, leisure and entertainment districts, as well as accessible to all major road, rail, air and bus links.
The Atlantic Quay area has recently added some significant new occupiers, including the Government Property Unit’s selection of Atlantic Square for a 300,000 sq ft regional hub.
Legal & General was represented by Savills and Addleshaw Goddard on this deal.
Derek Gilby, Senior Fund Manager at LGIM Real Assets, commented: “We are delighted to have secured the Scottish Courts and Tribunals Service as a tenant, boosting the public sector covenants for the Fund on this excellent office investment, whilst providing an inflation linked income stream and taking the size of the Fund to well in excess of £1bn. The LPI Fund has consistently delivered its performance targets since its launch in 2010 and offers the high credit quality and longevity of income that risk-averse investors are seeking in this market.”
Tom Roberts, Head of Strategic Investment and Regeneration at LGIM Real Assets, added: “This area of Glasgow has witnessed significant regeneration in the last few years and as a result the Atlantic Quay area has become a strong focal point on the city’s commercial offering. This acquisition is a very compelling deal for the Fund, offering long-term growth and secure income prospects.”
LPI Income Property Fund has reached £1.1 billion of assets under management. Launched in 2010, the Fund offers defined Benefit pension schemes an innovative way to invest in direct property with secure, primarily government backed, inflation-linked sources of income, generating income yields well in excess of those from comparable asset classes such as index-linked gilts or social housing debt.
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 £951.1bn in assets on behalf of over 3,200 clients (as at 30 June 2017), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £24.9bn (as at 30 June 2017), actively investing and managing assets across commercial property, private residential, infrastructure and property lending and, most recently, corporate credit.
Legal & General Group
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with a number of growing businesses in the US and in other countries. At 30th June 2017, we had over £951 billion in total assets under management. Over fifteen million people worldwide rely on us to help them save for the future and to protect their families and their homes.
We work with companies and pension trustees to help people build security in retirement, being the UK’s largest investment manager for UK corporate pension schemes, a major provider of auto-enrolled pensions and a market leader in pensions de-risking. We have also made a commitment to invest around £15 billion in direct investments, with £12 billion already invested in areas such as homes, urban regeneration, clean energy and small business finance, driving economic growth and making a positive difference to the UK’s built environment.