Legal & General Investment Management’s real asset division is funding the development of two student accommodation blocks in the East Midlands of England.
LGIM Real Assets said it has made a £25.6m (€29.2m) acquisition on behalf of Legal & General’s LPI (Limited Price Inflation) Income Property Fund.
EBW Developments, a joint venture between Bloc and Marcus Worthington Properties, is the developer.
The accommodation will consist of 301-ensuite student rooms arranged across two blocks and development is expected to be completed by the fourth quarter of 2019.
Legal & General said the blocks have been pre-let to the University of Lincoln for 21 years.
Derek Gilby, a senior fund Manager of the LPI Income Property Fund, said: “We believe that quality facilities help to provide a quality education.
“This is an excellent buy for the fund, offering a secure long-term income stream from an investment grade University as well as satisfying our objective of continuing to secure public sector tenants for the fund.”
Launched in 2010, the LPI Income Property Fund has over £1.2bn of assets under management.