LGIM Real Assets, Legal & General's property arm, has acquired Atlantic Quay 3, the central Glasgow Scottish court and tribunal building, from the Moorfield Group for £50 mln (€56 mln).
LGIM bought the asset on behalf of its LPI (limited price inflation) income property fund.
Atlantic Quay 3 is a 79,500 ft2 (7,400 m2) Grade A modern office building, fully let on a 25-year lease to the Scottish Courts and Tribunals Service.
'We are delighted to have secured the Scottish Courts and Tribunals Service as a tenant, boosting the public sector covenants for the fund on this excellent office investment, whilst providing an inflation linked income stream and taking the size of the Fund to well in excess of £1 bn,' commented Derek Gilby, senior fund manager at LGIM Real Assets.
'This area of Glasgow has witnessed significant regeneration in the last few years and as a result the Atlantic Quay area has become a strong focal point on the city’s commercial offering,' commented Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets.
'This acquisition is a very compelling deal for the fund, offering long-term growth and secure income prospects.'
Legal & General was represented by Savills and Addleshaw Goddard on this deal.
