L&G completes £24.5m debt deal with Citygrove

Legal & General (“L&G”) announces that it has completed a £24.5m bi-lateral loan to refinance three offices and a leisure centre owned by Citygrove.

This latest deal continues to prove the platform’s ability to provide competitively priced debt at the shorter end of the market.

Arranged over a seven year term, the loan is secured against three office buildings, let to St James’ Place on long term leases, in Cirencester and Newbury, and a David Lloyd Centre also let long term, based in Luton.  The loan replaces existing bank finance from Close Brothers Property Finance.

Arranged by Legal & General’s Private Credit business, part of LGIM Real Assets, the drawdown of the loan is immediate.

LGIM Real Assets’ property lending business has now lent over £2 billion across 21 deals. The transaction follows closely behind its first acquisition finance deal for Olympia London – backing Deutsche Finance International and Yoo Capital’s £296m purchase of the iconic exhibition centre asset. 

Ashley Goldblatt, Head of CLL at LGIM Real Assets, said: “This transaction further demonstrates our ability to continue to move into areas that the market might not traditionally expect to see us in – in this case a loan term more normally associated with banks.  We are able to invest at the short, medium and long edge of the curve, as well as across alternative asset classes, demonstrating the breadth of our lending capabilities.”

Toby Baines, Chairman at Citygrove, commented:  “We found LGIM Real Assets very straight forward, reliable and quick to deal with.  We concluded the transaction in a very acceptable timescale and enjoyed working with them.  We hope this is one of many that we will do with them in the future.”


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Olivia Bayliss

Olivia Bayliss

Head of Communications

Capital and LGIM Real Assets

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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 £902bn in assets on behalf of over 3,200 clients (as at 31 December 2016), providing products and solutions spanning all asset classes.  LGIM Real Assets, headed up by Bill Hughes, has AUM of £23.2bn (as at 31 December 2016), actively investing and managing assets across commercial property, private residential, infrastructure and property lending and, most recently, corporate credit.