L&G Sells Argyll Street Office Block in London
16 Dec 2016
Legal & General Investment Management Real Assets (LGIM Real Assets) announces, on behalf of its Life Fund, that it has sold 9 Argyll Street.
Legal & General Investment Management Real Assets (LGIM Real Assets) announces, on behalf of its Life Fund, that it has sold 9 Argyll Street, London W1 to a Private Overseas Investor for £21.25 million, which equates to a net initial yield of 2.81%.The sale follows a series of successful asset management initiatives on the property, which have delivered a strong return for LGIM Real Assets’ Life Fund.
9 Argyll Street sits in the heart of the west end of London. The building comprises a retail unit, which is let to Jigsaw, arranged over the basement, ground and first floors with five floors of separately accessed office accommodation above.
This year the building has undergone a significant asset management programme to complete the business plan and deliver value for the Fund. This has involved an innovative approach to the rent review of the retail unit which was successfully concluded, resulting in an increase of rent of 49% and setting a new high for the street.
Furthermore, we have also restructured the lease for the 6th floor offices, and refurbished and re-let the 4th and 5th floors within five months of their respective lease expiries, securing headline rents of £72.50 per sq ft, thereby doubling the office rents over the last two years.
James Whitehill, Senior Fund Manager of the Life Fund at LGIM Real Assets, said: “The successful conclusion of the various initiatives under the business plan coupled with the subsequent sale are testament to the expertise of our asset management team. These initiatives have in turn delivered excellent returns for the Fund.”
CBRE acted for LGIM Real Assets on the sale, and Springer Nicolas acted for the buyer.
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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 £842bn in assets on behalf of over 3,200 clients (as at 30 December 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £21.1bn (as at 30 June 2016) and is responsible for the division’s direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.