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|
|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|
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.”
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 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 2022