LGIM Real Assets (Legal & General) announces that it has acquired Atlantic Quay 3, the central Glasgow Scottish court and tribunal building, from the Moorfield Group for £50 million.
4 Jan 2018
Legal & General has bought the asset on behalf of its LPI (Limited Price Inflation) Income Property Fund (the “Fund”) bringing its investment portfolio to £1.1 billion.
Atlantic Quay 3 is a 79,500 sq ft Grade A modern office building. It is fully let on a 25-year lease to the Scottish Courts and Tribunals Service. Based in the heart of Glasgow’s International Financial Services District, the property sits in a prime riverside location and is just a short walk from Glasgow’s main shopping, leisure and entertainment districts, as well as accessible to all major road, rail, air and bus links.
The Atlantic Quay area has recently added some significant new occupiers, including the Government Property Unit’s selection of Atlantic Square for a 300,000 sq ft regional hub.
Legal & General was represented by Savills and Addleshaw Goddard on this deal.
Derek Gilby, Senior Fund Manager at LGIM Real Assets, commented: “We are delighted to have secured the Scottish Courts and Tribunals Service as a tenant, boosting the public sector covenants for the Fund on this excellent office investment, whilst providing an inflation linked income stream and taking the size of the Fund to well in excess of £1bn. The LPI Fund has consistently delivered its performance targets since its launch in 2010 and offers the high credit quality and longevity of income that risk-averse investors are seeking in this market.”
Tom Roberts, Head of Strategic Investment and Regeneration at LGIM Real Assets, added: “This area of Glasgow has witnessed significant regeneration in the last few years and as a result the Atlantic Quay area has become a strong focal point on the city’s commercial offering. This acquisition is a very compelling deal for the Fund, offering long-term growth and secure income prospects.”
LPI Income Property Fund has reached £1.1 billion of assets under management. Launched in 2010, the Fund offers defined Benefit pension schemes an innovative way to invest in direct property with secure, primarily government backed, inflation-linked sources of income, generating income yields well in excess of those from comparable asset classes such as index-linked gilts or social housing debt.
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