LGIM Real Assets (“Legal & General”) announces, on behalf of its second UK Property Income Fund (“UK PIF II” or the “Fund”), that it has exchanged contracts to acquire Riverside Retail Park in Stafford from LXB Retail Properties for a total consideration of £36.8m, reflecting a net initial yield of 6.8%. This acquisition marks the final acquisition for UK PIF II.
9 Jan 2018
As part of a linked transaction, the Legal & General Leisure Fund has entered a forward commitment to purchase the adjacent leisure development known as Waterfront for £15m, which will be anchored by Odeon cinemas.
The retail and leisure scheme was developed in 2016 and provides a total of 102,060 sq ft of retail accommodation across 17 retail units. The anchor tenants are M&S and Primark, with a strong supporting tenant line-up including River Island, H&M, Outfit and JD Sports. There are currently four vacant units, two of which are under offer. The scheme benefits from a 1,025 space multi-storey car park located in the Waterfront and an additional 180 spaces underneath Riverside; both car parks are operated by the local authority. Waterfront will include six restaurants and a six screen Odeon cinema. Nandos and Frankie & Benny’s are already trading.
Following the success of UK PIF I, LGIM Real Assets launched its second fund within The UK Property Income Fund model series. The fund has a seven year life span and delivers a core/core-plus risk strategy and includes investment from Legal & General Group and the fund team with a total buying power or Gross Asset Value (GAV) of £610 million when including gearing.
Following this latest acquisition, UK PIF II has acquired a balanced portfolio of 13 properties to date, totalling approximately £525m. Located in strong growth locations across the UK, these include Priory Court and the Lewis Building in Birmingham; The Overgate Centre in Dundee; The Grafton in Cambridge and FC200, West London. The Fund continues to successfully implement its business strategy for each of the properties, adding value and driving income growth across the portfolio through clever asset management initiatives.
Charlie Walker, Director of LGIM Real Assets and Fund Manager of UK PIF II, said: "This acquisition for UK PIF II is an excellent final addition for the Fund, allowing us to secure a high-quality new shopping destination in Stafford with an attractive income profile. We are looking forward to working with the retailers and continue to further enhance Riverside’s footfall, following recent new openings."
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)
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. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021