Legal & General acquires Soho office scheme for Â£32M.
27 September 2011
Legal & General Property ("LGP") announces that, on behalf of its Managed Fund ("the Fund"), it has acquired the freehold interest in 76-88 Wardour Street from Scottish Widows Investment Partnership ("SWIP") for £32.8 million.
The property occupies a prominent corner position and comprises three retail units with five floors of vacant offices above, totalling 48,000 sq ft. The ground and lower ground floors are let to Oxac Ltd (trading as Wahaca), Qsoft Properties Ltd and Hummus Brothers Ltd on leases expiring 2027, 2022 and 2023, respectively.
LGP in conjunction with Walbrook Land propose to undertake a comprehensive refurbishment of the offices to deliver 33,000 sq ft of new Grade A space over the upper five floors in Q1 2013. Floor plates will range from 5,250 sq ft to 7,000 sq ft and will benefit from triple aspect windows. The office space will be serviced by a new enlarged and prominent corner reception, with a high quality contemporary fit-out.
Mark Russell (pictured), Fund Manager at Legal & General Property, commented: "This acquisition provides us with the opportunity to create a high quality office product in this core Soho location. The market remains constrained in supply and we anticipate strong demand from a wide range of occupiers. The refurbishment project also provides the ability to fundamentally improve the sustainability credentials of the building, a factor which we believe is becoming ever more important for our tenants."
Tim Stotesbury, Director of Walbrook Land, added: "There is currently very little competing space that can be delivered as quickly as this scheme, and there is a growing demand from new media companies wishing to be located in the area. We are delighted to be working with Legal and General on this exciting scheme."
Jon Bailey, Investment Director at SWIP, said: "This sale allowed our Clients to take the opportunity of realising the potential from a West End development now."
DTZ acted for LGP and Strutt & Parker acted for SWIP.
Legal & General Property contacts:
Dido Laurimore / Olivia Goodall / Toyah Simpson
Financial Dynamics (for Legal & General Property)
+44 (0)20 7831 3113
Legal & General Property
+44 (0)20 3124 2700
Notes to editors
Walbrook Land was formed in October 2006 by Tim Stotesbury to focus on development and refurbishment opportunities in the prime Central London area.
Walbrook Land is currently developing / leasing over 150,000 sq ft in Central London in five principal schemes: 103 Cannon Street, EC3; 155 Fenchurch Street EC3; 2 Copthall Avenue, EC2; 10 Lloyds Avenue, EC3; and 20 Rathbone Place, W1.
Walbrook Land is backed by Palmer Capital. Walbrook Land will also use other capital partners to finance development and investment deals. Current joint venture partners include GE Capital Real Estate and Lothbury Investment Management.
Legal & General Property
Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe's largest institutional asset managers and a major global investor. LGIM manages approximately £362bn of assets on behalf of more than 3,300 clients (31 March 2011) and provides products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles and two segregated mandates with an aggregate asset value of over £10.3bn as at 30 June 2011. These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment Fund; UK Logistics Fund; Arlington Business Parks Partnership; and the English Cities Fund
Single Asset Vehicles
Bracknell Regeneration Partnership; Central Saint Giles Partnership; Performance Retail Limited Partnership and Warrington Retail Limited Partnership
Life Fund; Linked Pensions; Linked Life; Managed Fund; Property Unit Trust; UK Property Income Fund; LPI Income Property Fund and the Hybrid Property Fund.
LGP's UK-focused fund management platform has built and retained a strong track record of outperformance across the sector. Owing to its size, diversity and penetration, it benefits from best in class banking and property industry contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities. Taking a client-centric approach, the business places the highest priority upon integrity and transparency, leveraging upon the significant resources provided by the wider LGIM platform. Sector specialists cover each sphere of the market and are supported by LGP's market-leading research capability.
LGP's sector specialisms cross all facets of the real estate market. In particular, the Company has a major development platform, responsible for delivering the West End office market's latest landmark, Central Saint Giles, and currently involved in developing its high profile Covent Garden scheme, Agar Street, as well as significant town-centre retail regeneration projects, including Bracknell, Northampton and Eastbourne.
As a leading property investor and developer, LGP takes its commitment to sustainability very seriously, placing it at the centre of all investment decisions and its working culture. As such, it seeks to make every single one of the properties it manages as efficient and sustainable as possible. For further details of the successful initiatives it has put in place to date, and an overview of its strategy and targets going forward, please find a copy of the Sustainability Review and Strategy report under the CSR section of its website at http://www.legalandgeneralgroupcsr.com.
Legal & General Property Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091897.
For more information please contact:
PR Manager Investments
t: +44 (0) 2031 242096