Press release
Legal & General’s Principal Balance Sheet Businesses Accelerate Real Estate Disposals: £1.1bn Transaction Volume in 2017 To Date
Legal & General Capital (LGC) and Legal & General Retirement (LGR), have executed a record £1.1bn of real asset disposals in 2017 to date, of which approximately £1bn has been to international investors.
24 Oct 2017
Legal & General’s real asset strategy combines skillsets and portfolios in LGC and LGR, alongside LGIM Real Assets. Legal & General’s principal balance sheet businesses, Legal & General Capital (LGC) and Legal & General Retirement (LGR), have executed a record £1.1bn of real asset disposals in 2017 to date, of which approximately £1bn has been to international investors. Legal & General’s share of gross proceeds from these transactions has been £526m.
Legal & General Retirement’s (LGR’s) recent sale of 70 Gracechurch St delivered gross proceeds of £272m as part of its active management of the asset portfolio backing its annuity liabilities.
In addition, Legal & General Capital (LGC) generated gross proceeds of £254m from transactions with a gross value of £817m (see table below). All full asset disposals met or exceeded targeted returns of 10-12% IRR.
| Transaction | Gross proceeds (£m) | Ownership share (%) | LGC share of gross proceeds (£m) |
|---|---|---|---|
| *Partial sale / distribution | |||
| Cardiff – 1 Central Square | 51.0 | 100.0 | 51.0 |
| Cardiff – 2 Central Square | 56.5 | n/a | 38.0 |
| Piccadilly, London | 52.0 | 100.0 | 52.0 |
| Bracknell Car Park | 39.7 | 50.0 | 19.9 |
| Arlington Business Parks Partnership | 443.2 | 7.8 | 33.9 |
| Bishopsgate Property Fund* | 84.9 | 25.0 | 21.2 |
| Access Development Partnership* | 22.0 | 50.0 | 11.0 |
| NTR Wind 1 LP* | 29.8 | 47.5 | 14.1 |
| Pemberton Funds* | 37.8 | n/a | 13.0 |
| Total | 816.9 | 254.2 |
Proceeds are being reinvested alongside other Legal & General funds in our substantial UK regeneration programme. Many UK cities and towns are regenerating themselves successfully in partnership with Legal & General.
The successful LGR/LGC business model, established four years ago, is now at a point in its development where investments can either be manufactured within the business to suit specific needs or recycled into new opportunities.
Nigel Wilson, Legal & General CEO said: “Strong demand from international buyers demonstrates that the UK is a great place to invest. Having invested £12bn to date, we are on track to invest £15bn of long-term capital in UK housing, urban regeneration, clean energy and business growth.”
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