Legal & General Investment Management Real Assets (LGIM Real Assets) has announced that, on behalf of the joint venture partnership with PGGM and Legal & General Capital (LGC), it has sold all the properties held by Bishopsgate Property Fund.
9 May 2022
In the second half of 2021, LGIM Real Assets sold 11 assets across all sectors in London and Brighton to individual purchasers for a combined sales value of £169.5m. The properties included 101 St Martin’s Lane in London, Selco in Walthamstow, 95-97 High Street in Clapham and I-Scene in Ilford.
The joint venture initially acquired the 24-asset portfolio in 2014 for £360m and following the final disposal, the sale values for all properties in the portfolio was £474m. This is almost double the MSCI reported capital value growth over the period.
LGIM Real Asset’s asset management of the portfolio resulted in the completion of 65 new lettings, 13 lease renewals, 20 lease re-gears, 19 reversionary rent reviews and 11 dilapidations settlements. A total of 128 value accretive asset management initiatives created approximately £57m of added value.
LGIM Real Assets and the Bishopsgate Property Fund were represented by Knight Frank and Macfarlanes and the debt providers were Santander and Wells Fargo.
Will Edwards, Head of Emerging Strategies for LGIM Real Assets: “We are delighted to have successfully concluded the disposals programme necessary to conclude the Bishopsgate Property Fund strategy within our targeted timeframe and to have delivered a geared return significantly in excess of the investment objective. We have enjoyed working and building a successful relationship with both Limited Partners over the past seven years.”
Dirk Bootsma, Senior Director for PGGM: “We are very pleased with the successful execution of the joint venture strategy. The value-add initiatives have been very well managed in the unique market circumstances.”
Notes to editors
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
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.