LGP acquires UK private hospital for EUR 20m

Legal & General Property (LGP) announced on Friday that, on behalf of the Property Unit Trust, it has acquired the BMI Woodlands Hospital in Darlington, UK from Bluesparkle.

The investment volume of £16.65 mln (EUR 20 mln) reflects a net initial yield of 6.25%.

The freehold property is a 5,300-m² private hospital building arranged over two floors and set within a landscaped area which includes a 72-space car park. Let to BMI Healthcare on a 25-year lease, with 23.5 years unexpired lease term remaining, it provides a passing rent of £1.1 mln per annum with RPI-linked upwards only rent reviews.

Constructed in 2001, it is located on a mixed-use business park, two miles to the east of central Darlington. Surrounding occupiers include Morrisons, B&Q, McDonalds and a Premier Inn hotel.

Launched in 2006, the PUT has delivered top quarterly performance every year since its inception. Benchmarked against the Lipper Property IMA and IPD Balanced Monthly Index Funds, its investment objective is to achieve income and capital growth through diversified investment in UK commercial property with a focus on property selection and active management within a research-driven risk/return framework for portfolio construction.

Darlington is the 10th direct property acquisition for the fund since the start of the year. The fund has more than doubled in size from £176 mln to over £400 mln since mid 2009.

GVA Grimley represented LGP and BNP Paribas advised Bluesparkle.