Legal & General Property (LGP) announces, on behalf of its Legal & General UK Property Fund, that it has successfully acquired 55 Strand in London and 5 Vanwall Business Park in Maidenhead from Aviva for a total consideration of just over £60.6 million (€76.5 mln).
Legal & General’s £1.7 billion (€2.1 mln) UK Property Fund converted into a Property Authorized Investment Fund (PAIF) structure in May this year, resulting in more tax-efficient income for many investors.
One of the fastest growing funds in its sector, launched in 2006 the Fund has grown from £100 million since inception and by over 55% in the last 12 months alone as it continues to see steady inflow of capital from both Retail and Institutional investors. 55 Strand
LGP has acquired 55 Strand, London WC2 for £37.4 million (€47.2 mln) representing a yield of 4.34% in June 2015 following the expiry of a rent free period. The building is a freehold office and retail asset located in an established core location on the South side of Strand.
LGP has purchased the freehold interest in 5 Vanwall Business Park in Maidenhead for a total consideration of £23.26 million, reflecting a net initial yield of 6.45%.
Matt Jarvis, Fund Manager of the Legal & General UK Property Fund, comments: "Offering a number of longer term asset management opportunities, these two acquisitions reflect the Fund’s strategy to purchase schemes with the right property fundamentals that provide immediate and secure income from a diverse mix of tenants whilst also providing rental driven growth in the medium term. Our strong inflows into the fund have allowed us to continually modify our strategy in order to opportunistically capture the right assets at the right time and we remain very active in the market with an exciting pipeline of deals under offer.”
Colliers advised LGP on the purchase of 5 Vanwall Park, with Aviva being represented by Knight Frank. Fineman Ross advised Aviva on the sale of 55 Strand and CBRE advised LGP.