LGIM Real Assets (Legal & General) has secured a major pre-let with The UK Government following its acquisition of India Buildings in Liverpool from Shelborn Asset Management.
17 Aug 2017
The letting will see HMRC become one of the largest employers in the city, helping to facilitate significant economic growth in the northwest city.
The UK Government has taken a 25 year lease for around 270,000 sq ft of office space at the landmark building, and will occupy 10 floors. Staff will be moving in from 2019. India Buildings is in the centre of Liverpool with excellent access to transport links and good digital infrastructure. Around 3,500 HMRC staff will be based in the building, which will become one of its state-of-the-art regional centres.
This latest deal is Legal & General’s third forward funding agreement with the UK Government. HMRC has already signed a 107,000 sq ft pre-let at Salmon Harvester Properties' 3 Glass Wharf in Bristol city centre as well most recently signing for 265,976 sq ft of office space at Legal & General and Rightacres’ Central Square scheme in Cardiff.
Legal & General has acquired India buildings on behalf of its LPI Income Property Fund. The developer is Marwees India Buildings with Shelborn Asset Management acting as the development manager. Knight Frank acted for Marwees India Buildings and Shelborn Asset Management, while Mason Owen acted for Legal & General on this transaction.
The LPI Income Property Fund Launched in 2010 and offers Defined Benefit pension schemes an innovative way to invest in direct property with secure, primarily public sector backed, inflation-linked sources of income. The portfolio generates income yields well in excess of those from comparable asset classes such as index-linked gilts or social housing.
Adam Kerr, Head of Annuity Transactions, LGIM Real Assets, said: “This is one of the largest ever office lettings in the north of England and continues the trend of significant investments in Liverpool which has lead the renaissance of the city over the last 10 years. We are proud to have played our part in securing this investment which will make a meaningful impact on the regeneration of this area of the city, helping to create social and economic growth through the creation of jobs and breathing new life into this heritage asset. At LGIM Real Assets we have a commitment to improving our UK cities for the better and it is exactly this type of deal that can be a catalyst for change.”
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.
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