Legal & General Investment Management Real Assets (LGIM Real Assets) has offloaded all the properties held by the south of England focused Bishopsgate property fund, with total sales reaching £474 mln (€554 mln).
The sales were struck on behalf of the joint venture partnership between PGGM and Legal & General Capital (LGC), which initially acquired the 24-asset portfolio in 2014 for £360 mln.
The final sales amount was almost double the MSCI reported capital value growth over the period, LGIM noted.
In the second half of 2021, LGIM Real Assets sold 11 assets across all sectors in London and Brighton to individual purchasers for a combined sales value of £169.5 mln. The properties included 101 St Martin’s Lane in London, Selco in Walthamstow, 95-97 High Street in Clapham and I-Scene in Ilford.
LGIM Real Asset’s asset management of the portfolio resulted in the completion of 65 new lettings, 13 lease renewals, 20 lease re-gears, 19 reversionary rent reviews and 11 dilapidations settlements. A total of 128 value accretive asset management initiatives created approximately £57 mln of added value, the firm said.
Will Edwards, head of emerging strategies for LGIM Real Assets, said: 'We are delighted to have successfully concluded the disposals programme necessary to conclude the Bishopsgate property fund strategy within our targeted timeframe and to have delivered a geared return significantly in excess of the investment objective.
'We have enjoyed working and building a successful relationship with both Limited Partners over the past seven years.'
Dirk Bootsma, senior director for PGGM, added: 'We are very pleased with the successful execution of the joint venture strategy. The value-add initiatives have been very well managed in the unique market circumstances.'
LGIM Real Assets and the Bishopsgate Property Fund were represented by Knight Frank and Macfarlanes and the debt providers were Santander and Wells Fargo.
