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Legal & General & Mitsubishi sell Central Saint Giles to Google for $1 billion
Legal & General Investment Management Real Assets (LGIMRA) has today announced, on behalf of Central Saint Giles Limited Partnership, its 50:50 joint venture with Mitsubishi Estate London Limited, that it has sold the iconic Central Saint Giles office development in London’s West End to Google for $1 billion.
13 Jan 2022
The sale represents a strong exit from the joint venture vehicle for both investors after developing and owning the asset for more than 10 years.
Central Saint Giles is one of London’s more colourful mixed-use developments and one of the largest in the West End. The development, architect Renzo Piano’s first UK project, is formed of three buildings surrounding a central, public piazza.
The architecturally striking building comprises 408,000 sq ft of office space with 25,000 sq ft of restaurants and cafes at ground floor level. The building is highly sustainable, benefiting from an in-use BREEAM Excellent rating. At the western end of the site, two residential buildings contain a mix of 109 private, affordable and social apartments. The long leasehold interests of the residential buildings continue to be owned and managed by the existing owners.
The buildings have become a landmark in central London with their elevations broken down into 21 different facades in orange, green, red, yellow and grey glazed ceramic tiles. They occupy a pivotal position linking Bloomsbury, Covent Garden, Soho and Fitzrovia and were a focal point for the regeneration of the St Giles area.
Situated adjacent to Tottenham Court Road underground station where the Central line and Northern line intersect, the location offers easy access to the West End, Midtown and City business districts, and also further afield to Berkshire, Essex and South East London once the Elizabeth Line opens.
The investors in the joint venture are Mitsubishi Estate London and the L&G Managed and ReAssure funds. The sale is in line with LGIM’s business plan for the asset and concludes a highly successful partnership.
Bill Hughes, Head of Real Assets for LGIM: “The sale is a strong sign of continued demand for the highest quality central London office space. It represents an excellent outcome for our investors, derived from consistently high-quality asset management by our team over the past decade, to deliver on the business plan for Central Saint Giles. We are pleased to have concluded the deal off-market with Google, which knows the asset well and saw the potential to invest longer-term in an exceptional building.”
Yuichiro Shioda, Managing Director and CEO of Mitsubishi Estate London: “Mitsubishi Estate London has been involved with Central Saint Giles since the development phase, and this sale is the culmination of one of our flagship projects. Its acquisition by Google, a company renowned for occupying only the very best buildings, is a fitting legacy for one of the West End’s most successful and recognisable developments. We remain committed to London offices, through new opportunities as well as existing schemes.”
Jackie Janssen
PR Manager
Legal & General Investment Management Real Assets
T: 07470 933 433
LGIM PR Team
T: 0203 124 4355/ 4363
Notes to editors
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY23) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.
As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.
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.