L&G Acquires St James Retail Park in Dumbarton Â£47.75m.
29 April 2014
Legal & General Property (“LGP”) announces on behalf of its UK Property Unit Trust (“PUT” / the “Fund”), one of the fastest growing funds in its sector, that it has acquired St James Retail Park, Dumbarton, from British Land for £45.75 million, reflecting a net initial yield of 5.9%.
Representing the only significant out of town retail in Dumbarton, the property comprises a dominant multi-let retail warehouse scheme totalling 169,293 sq. ft. and anchored by a large Asda supermarket. Located approximately 13 miles north-west of Glasgow, Dumbarton is the principal town within the district of Dunbartonshire and the administrative headquarters of the local government.
Bringing the PUT’s investment in the market to over £100 million since the start of the year, launched in 2006 the Fund has grown from £100 million to over £1.3 billion since inception. Equating to 35% growth per year on average, it is one of the very few property funds in the sector that continues to see steady inflow of capital from both Retail and Institutional investors. Delivering strong returns, the Fund has outperformed the Lipper Property IMA Sector peers over one, three, and five years, with 1% per annum outperformance over the five years to January 2014.
Matt Jarvis, Fund Manager of the PUT at Legal & General Property, comments: "The asset is a good example of what the Fund has been looking for in the retail warehouse sector. Dominating the town's retail offer, it is let off affordable rents to a strong and diverse tenant line-up, including ASDA, M&S Simply Food, Homebase and Frankie & Benny's, and offers additional asset management opportunities to drive future growth prospects."
CBRE advised British Land, and Strutt and Parker represented LGP.
Notes to editors
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 £443bn in assets on behalf of more than 3,100 clients (30 September 2013) 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 16 separate funds or vehicles and two segregated mandates with an aggregate asset value of £11.6bn as at 30 September 2013. These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment 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 out-performance 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 West End landmark building, Central Saint Giles, and Agar Street, its high profile Covent Garden office scheme, amongst others, and is currently involved in bringing forward a number of significant town-centre retail and leisure regeneration projects, including Bracknell, Trowbridge, Northampton and Eastbourne.
Legal & General Property Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091897.
For more information please contact:
PR Manager, Legal & General Capital and Real Assets, LGIM (Property, infrastructure and alternative finance)
t: + 44 (0) 203 124 2777
m: + 44 (0) 7718 395 279
About Legal & General
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.