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L&G Backs Olympia Purchase with Debt Facility, Representing First Acquisition Finance Deal
Legal & General (“L&G”) announces that it has completed a bi-lateral loan to fund the acquisition of Olympia London Exhibition Centre.
10 Apr 2017
A joint venture of institutional investors led and advised by Deutsche Finance International (“DFI”) and Yoo Capital (“YC”) purchased the iconic asset for £296 million.
The acquisition finance for the deal came from Legal & General’s Private Credit business, part of LGIM Real Assets, on behalf of Legal & General Retirement (“LGR”). LGR invests in high quality assets, both short and long term to match its UK liabilities and pay pensioner incomes. It is arranged over a five year term and its draw down is immediate. LGIM Real Assets’ property lending business has now lent over £2 billion across 20 deals.
Olympia London is a world class 130 years old exhibition and events business, which is situated on a prime 14 acre freehold site in West London. Each year Olympia welcomes more than 1.6 million visitors and hosts over 200 inspiring events utilising its seven connected and flexible spaces. The exhibition and events business benefits from a strong competitive advantage due to its iconic building, central location and the quality of its management team. The acquisition also involves 3.9 acres of freehold land available for hospitality, leisure and residential development.
Ashley Goldblatt, Head of Commercial Lending Ltd at LGIM Real Assets, said: “Representing our first acquisition finance deal, this debt facility brings our total lending to over £2bn and demonstrates our ability to continue to move into areas that the market might not traditionally expect to see us in. Continuing to prove our platform’s ability to understand and back alternative asset classes, in this case working through a complex arrangement to support a time sensitive off-market transaction, and providing a shorter term facility. Olympia London is an iconic exhibition centre of a scale and enviable location not replicated elsewhere in the UK. With the combination of Deutsche Finance’s and Yoo Capital’s vision and asset management expertise, it has a strong future.”
Lloyd Lee, Yoo Capital’s Managing Partner, said: “We are extremely pleased to be working with L&G and, under Ashley’s leadership, L&G delivered with an impressive speed, decisiveness and commercial mindset.”
Gavin Neilan, Deutsche Finance’s Co-Managing Partner, added: “We believe that the quality and pedigree of L&G’s sponsorship on the financing is an ideal match to the stable, long-term institutional nature of our investors in Germany who also represent major pension and insurance capital.”
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About Deutsche Finance Group
Deutsche Finance International is a London based privately owned value add and opportunistic real estate investment firm and investment adviser of DFI European Value Add Fund SCSP. The firm is part of the Deutsche Finance Group, a leading global real estate fund of funds and institutional investment management firm active since 2003. Deutsche Finance Group offers access to institutional markets and investment opportunities for private, professional and institutional investors. Additional information can be found at www.deutsche-finance-group.de
About Yoo Capital
Yoo Capital is a privately owned real estate investment firm with over $1.0 billion of gross real estate assets under management across Greater London. Specializing in creative, complex mixed-use investments, the firm has in house private equity, creative asset management and development capabilities with over 30 years and $10 billion of transactional experience. Recently, Yoo Capital entered into a long-term capital commitment with Deutsche Finance to focus on high quality, value creation opportunities across Central London and the UK. Additional information can be found at www.yoocapital.com
Further information
Olivia Bayliss
Head of Communications
Capital and LGIM Real Assets
Notes to editors
LGIMRA is a division of Legal & General Investment Management (LGIM), one of Europe’s largest
institutional asset managers and a major global investor. LGIM manages £1.29 trillion1 ($1.57tn) in
assets, working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36 billion2 ($43.8bn) and is one of the largest
private markets investment managers in the UK. Investing in both debt and equity and across the
risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial,
operational and residential property sectors, as well as infrastructure, real estate, corporate and
alternative debt.
Taking a long-term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level.
1LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
2Source: LGIM Real Assets. AUM data as at 30 June 2022.
*at 13 Jan 2023
IMPORTANT INFORMATION
For professional clients only. Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Views expressed are of LGIM as at 12 January 2023. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.