L&G Property Fund strengthens BTR and office acquisitions
On behalf of Legal & General’s UK Property Fund, LGIM Real Assets has exchanged contracts on a Grade A office building in Salford and a Built to Rent (BTR) site in Chelmsford.
This marked the second BTR acquisition for the fund, with Legal & General committing £24.5m to the acquisition and development of the site which is bounded by the River Chelmer and Springfield lock.
Riverside House, which provides 11,692 sq ft Grade A office space, was acquired for £6.3m.
Matt Jarvis, senior fund manager – UK Property Fund at LGIM Real Assets, said: “Using our UK property market forecasts, the fund continues to invest in strong performing assets where we see prospects to drive value.
“The BTR transaction forms part of our strategic focus to increase our exposure to alternative and operational assets, whilst demonstrating the breadth of our wider fund management platform.
“As we continue to actively diversify our holdings, Build to Rent and Grade A office space remain preferred subsectors alongside operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with a robust rental growth story.
“The Fund continues to look to invest in assets in good locations and with strong property fundamentals. Both Chelmsford and Salford are exemplary of this.”
Legal & General has a strong track record in the BTR sector and this purchase marks the fifteenth BTR asset across Legal & General’s wider platform.
Legal & General was advised by Savills on this acquisition of the Chelmer Waterside BTR site.
Since its launch in 2006, the UK Property Fund has grown from £100m to £3bn.