FUND manager Legal & General Property (LGP) yesterday paid £370m for the Bishopsgate Long Term Property Fund Unit Trust, along with Legal & General Capital (LGC) and Dutch pension fund manager PGGM.
The newly acquired trust holds a portfolio of 24 commercial properties across the UK, including two London offices in Covent Garden and Kensington. Almost 60 per cent of its assets are in London and the south.
LGC and PGGM will act as limited partners with LGP as fund manager. LGP has provided a £142m facility to the partnership as the deal has introduced a “moderate level of gearing” to the portfolio, which previously held no debt.
Mathieu Elshout, PGGM’s senior investment manager, said: “The portfolio comprises well located, high quality UK assets, with significant opportunities to add value and to enhance the income return through asset management initiatives.”
And Laura Mason, director of direct investments at LGC, commented: “This investment demonstrates our continued commitment to opportunistically seeking out direct investments that provide our shareholders with strong risk-adjusted returns whilst utilising our broad capabilities and strong customer franchise.”