UK - Legal & General Property (LGP) has raised £42m (€48.2m) in new equity from existing investors for its Leisure Fund.

The fund manager has also been given the green light by the 25 institutional investors in the fund to extend the life of the vehicle from 2014 to 2020.

The Leisure Fund was formed in 2002 and holds prime leisure assets across the UK, including Millennium Leisure Park in Greenwich, London, The Leisure Exchange in Bradford, Aspects Leisure Park, just outside of Bristol, and Valley Centertainment in Sheffield.

The new equity raise has enabled the fund to continue investing; LGP has announced that it has agreed to forward fund a leisure development in Aldershot, a transaction worth £51m.

The deal marks the eighth acquisition for the Leisure Fund, which already has approximately £230m of assets under management.

The fund is currently rated the fifth highest performing fund within Investment Property Databank's (IPD) specialist pooled property funds index.

Andrew Ferguson, fund manager of the Leisure Fund, said: "This acquisition will enable the Leisure Fund to expand and develop its existing portfolio, and reflects our ongoing belief that there is significant value to be found in the leisure sector, which continues to offer long leases off lower base rents, providing an attractive alternative to some of the more traditional investment sectors."

The latest transaction will see the Leisure Fund, in conjunction with Citygrove Securities and Rushmoor Borough Council, provide capital to develop The Westgate development in Aldershot.
On completion, The Westgate will provide 170,000 square feet of leisure and retail space in the town centre.

"The Westgate represents a good opportunity to acquire a prime town centre leisure development scheme that will provide the long awaited catalyst for Aldershot's regeneration," Ferguson said.

Aldershot has a population of approximately 33,000, including a large military contingent. Ferguson said plans to consolidate the army's operations in the town, and Government targets to increase Aldershot's housing by 4,000 new homes, would create even greater demand for a central leisure offering.

He added: "The Westgate represents a good opportunity to acquire a prime town centre leisure development scheme that will provide the long awaited catalyst for Aldershot's regeneration."

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