Legal & General sells Soho office asset to Shaftesbury for £87 million

LGIM Real Assets announces that it has sold 72 Broadwick Street, a mixed-use office and residential scheme in central London, to Shaftesbury plc for £87 million.

LGIM Real Assets announces that it has sold 72 Broadwick Street, a mixed-use office and residential scheme in central London, to Shaftesbury plc for £87 million.

The asset was acquired by LGIM Real Assets in January 2015 for £67 million as the first purchase for its office joint venture partnership between Legal & General Capital and Dutch pension fund manager, PGGM. The sale offers an attractive return against the Partnership’s investment objective to deliver an annualised net IRR of 10%.

Located at the eastern gateway to Carnaby Street, the property occupies a strategic island site at the junction of two key Soho thoroughfares and will benefit significantly from the opening of both the Tottenham Court Road and Bond Street Crossrail stations in 2018. The building provides 54,100 sq ft of office accommodation, eleven apartments and a large basement car park.

Nigel Fuller, Senior Fund Manager at Legal & General, said: "This is a fantastic deal for the Partnership and testament to the strength of our central London office strategy. Through clever stock picking and active asset management, the team has delivered an exceptional outcome for our investors and strong returns. We will now seek to deploy this capital into other market opportunities where we see further value."

Further information

Faye Bennett

Faye Bennett

PR Manager

Legal & General Capital and LGIM Real Assets

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Notes to editors

LGIM Real Assets

LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £951.1bn in assets on behalf of over 3,200 clients (as at 30 June 2017), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £24.9bn (as at 30 June 2017), actively investing and managing assets across commercial property, private residential, infrastructure and property lending and, most recently, corporate credit.

Legal & General Capital

Legal & General Capital (LGC) is the early-stage investment arm of Legal & General Group. Investing from Legal & General’s £6bn principal balance sheet, LGC’s purpose is to generate long-term shareholder value by injecting new capital into key sectors where there has been a shortage of investment and innovation. Focused on Housing, Infrastructure (Urban regeneration and Clean Energy) and SME Finance, these key sectors reflect our aim to invest for the long term in economically and socially useful assets, to secure competitive returns and to create new asset classes for Legal & General’s varied investment requirements, for our partners and for the wider marketplace. Investments to date have included housebuilder CALA Homes, a Build to Rent joint venture, major urban regeneration projects in Salford, Newcastle, Cardiff and Bracknell, SME finance group Pemberton and clean energy firm, NTR.

Legal & General Group

Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with a number of growing businesses in the US and in other countries. At 30th June 2017, we had over £951 billion in total assets under management. Over fifteen million people worldwide rely on us to help them save for the future and to protect their families and their homes.

We work with companies and pension trustees to help people build security in retirement, being the UK’s largest investment manager for UK corporate pension schemes, a major provider of auto-enrolled pensions and a market leader in pensions de-risking. We have also made a commitment to invest around £15 billion in direct investments, with £12 billion already invested in areas such as homes, urban regeneration, clean energy and small business finance, driving economic growth and making a positive difference to the UK’s built environment.

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