Legal & General Investment Management Real Assets (LGIM Real Assets) announces, on behalf of its Life Fund, that it has sold 9 Argyll Street.
16 Dec 2016
Legal & General Investment Management Real Assets (LGIM Real Assets) announces, on behalf of its Life Fund, that it has sold 9 Argyll Street, London W1 to a Private Overseas Investor for £21.25 million, which equates to a net initial yield of 2.81%.The sale follows a series of successful asset management initiatives on the property, which have delivered a strong return for LGIM Real Assets’ Life Fund.
9 Argyll Street sits in the heart of the west end of London. The building comprises a retail unit, which is let to Jigsaw, arranged over the basement, ground and first floors with five floors of separately accessed office accommodation above.
This year the building has undergone a significant asset management programme to complete the business plan and deliver value for the Fund. This has involved an innovative approach to the rent review of the retail unit which was successfully concluded, resulting in an increase of rent of 49% and setting a new high for the street.
Furthermore, we have also restructured the lease for the 6th floor offices, and refurbished and re-let the 4th and 5th floors within five months of their respective lease expiries, securing headline rents of £72.50 per sq ft, thereby doubling the office rents over the last two years.
James Whitehill, Senior Fund Manager of the Life Fund at LGIM Real Assets, said: “The successful conclusion of the various initiatives under the business plan coupled with the subsequent sale are testament to the expertise of our asset management team. These initiatives have in turn delivered excellent returns for the Fund.”
CBRE acted for LGIM Real Assets on the sale, and Springer Nicolas acted for the buyer.
Notes to editors
Legal & General Investment Management Real Assets (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 £1.28tn in assets (as at 31 December 2020), 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 £36.3bn (as at 31 December 2020) 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. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.
(As of June 2021)
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