Legal & General Retirement (LGR) have announced the completion of the purchase of The Transport for London (TfL) Building at The International Quarter in Stratford for €330m (£246m) from Lendlease and LCR. This investment is the latest in a series of Legal & General initiatives to invest long-term capital in towns and cities across the UK.
Other recent transactions include regenerations in Leeds and Cardiff in addition to town centre refurbishments, regeneration, commercial and housing projects in locations including Salford – with Media City – Bracknell, Canning Town and Walthamstow. Legal & General has made €8.87bn (£6.6bn) of a committed €20.1bn (£15bn) of new direct investments in the UK.
UK urban regeneration and infrastructure investment stimulate employment and economic growth and provide a strong economic multiplier effect – Legal & General estimates that every €1.34 (£1) invested in physical infrastructure generates around €4.03 (£3) of local economic activity. They also offer an important asset class for L&G’s long-term capital, including the €60.5bn (£45bn) annuity book, as they provide stable revenues and enhanced long term returns to help fund the retirement income of our customers.
Kerrigan Procter, managing director of LGR, said: “This is a great deal for L&G and our annuitants, as well as for Stratford, where we expect to see real growth in jobs and homes as The International Quarter becomes operational. It is further evidence that we have the scale and the expertise to make a real difference by making our long-term funding available. The UK is a great place to invest and investing in real assets is economically and socially useful; we intend to do more.”
Gordon Aitchison, director of investment and development at Legal & General Property, added: “With significant volumes of patient capital under management, we believe that it is inevitable that the private sector in the form of long-term institutional investment plays a meaningful role in bringing about major regeneration and driving UK economic expansion. A significant new growth area for London, it is anticipated that Stratford will benefit from the creation of more than 40,000 new jobs and 11,000 new homes in the coming years.”
Dan Labbad, CEO, international operations at Lendlease, said: “Today’s announcement illustrates the confidence the investment market has in this approach and the opportunity presented by The International Quarter, London’s fourth major business district. This is a fantastic example of how the Olympics continues to bring lasting prosperity and employment opportunities to East London.”
David Joy, LCR chief executive, said: “Today’s announcement unlocks further value from The International Quarter, a major new employment hub in East London. Our partnership with Lendlease will bring 25,000 new jobs to the area by 2025, continuing the transformation of Stratford into one of London’s most vital and vibrant communities.”
Cushman & Wakefield advised Legal & General Property on the deal, while JLL acted for Lendlease and LCR.
