L&G invests in Barking Rail Freight Terminal
Legal & General Property (“LGP”) announces, on behalf of its annuity fund (the “Fund”), that it has completed the acquisition of Barking Rail Freight Terminal in London from AXA Real Estate, on behalf of clients, and its JV partner dmi Properties. The property was purchased for a total consideration of £53.7 million.
Offering a fully operational rail freight terminal which is directly connected to High Speed 1 and the Channel Tunnel, the deal comprises a unique opportunity to acquire the freehold interest in a strategic London infrastructure investment. Arranged over 32.67 acres, the site is fully let to DB Schenker for a term of 20 years from July 2014. The passing rent is subject to fixed increases over the first five years then upward only five yearly rent reviews linked to uncapped RPI.
Situated 12 miles east of Central London and within the M25, Barking is a key industrial and commercial location due to its excellent access to Central London, the wider south east and the national motorway network. The site is strategically important in the national rail network, as it is one of only two competent intermodal freight terminals serving London, and the international rail network, as it is the most northerly point on the network capable of accommodating European gauge wagons.
Adam Kerr, Head of long income transactions at Legal & General Property, commented: “The acquisition offers the opportunity to acquire the freehold of a major strategic rail head in east London giving direct access to the European rail network. Rail freight is set to expand substantially over the next decade, with growth being driven by demand for consumer goods and the need to find more sustainable modes of transport.”
Bill Hughes, Head of Real Assets at Legal & General Investment Management, added: “Another clear example of the growing synergies between the real estate and infrastructure sectors, this transaction not only supports our appetite to invest long term pension money into supporting the UK’s physical framework but promote more sustainable investment choices.”
The property represents the fourth rail terminal acquired by Legal & General Property, with other assets comprising terminals in Widnes, Castle Bromwich and Corby.
JLL acted for AXA Real Estate, WHY and Rubicon Securities acted on behalf of L&G on this transaction.
- Ends -
For further information, please contact:
PR Manager, Legal & General Property
020 3124 2777
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 £465bn in assets on behalf of over 3,100 clients (30 June 2014) 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 including three segregated mandates with an aggregate asset value of £15.5bn as at end of 2014. These funds include:
Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund
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.
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance. Owing to its size, diversity and penetration, it benefits from best-in-class banking and property 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 the significant resources provided by the wider LGIM platform. Protecting the medium to long term value of its portfolio, as a leader in sustainability, green principles are embedded into every property and investment decision.
Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. In particular, the Company has a major development platform, responsible for delivering community-focused projects ranging from West End landmark buildings to significant town-centre retail and leisure regeneration schemes.
Forming part of the Group’s larger UK housing and infrastructure investment strategy, LGP also continues to participate in a growing range of supply side housing activities, including financing affordable homes, the house building sector, urban regeneration, student accommodation and care homes.