Legal & General Property (LGP) has extended the term of its Industrial Property Investment Fund to 2020 and announced changes to the fund’s structure.
Legal & General Property (LGP) has extended the term of its Industrial Property Investment Fund to 2020 and announced changes to the fund’s structure.
The principal changes to the £780 mln (€919 mln) fund include increased flexibility to raise further equity and the introduction of an exit mechanism, providing all unit holders with a five-yearly option to leave the fund without causing it to close.
The fund was first launched in 1997 and has returned 7% per annum over the past decade, outperforming its sector benchmark by 2.1%. Its investment strategy is focused on higher yielding, predominantly multi-let industrial estate assets, with a significant focus on London and the South East of England.
Fund manager Jonathan Holland believes the changes will help achieve increased returns for investors. ‘We believe that the unanimous support received from investors to all resolutions is testament to [the fund’s] successful investment strategy and ability to modernise its offer,’ he said.
‘Furthermore, we feel that the UK’s industrial sector continues to offer strong returns and that, coupled with a number of attractive asset management opportunities, the fund is well placed to continue its strong performance going forward.’
