Legal & General Property (LGP) has announced the final close of its UK Property Income Fund, having secured a further £52 mln (EUR 60 mln) of equity in the last six months.
Legal & General Property (LGP) has announced the final close of its UK Property Income Fund, having secured a further £52 mln (EUR 60 mln) of equity in the last six months.
Since its launch in 2010, LGP has secured commitments totalling £300 mln from 14 major international institutional investors based in the Middle East, Denmark, UK, France, Finland, Switzerland and Japan. Allowing for gearing, the fund has a total investment capacity of circa £475 mln.
The closed ended fund has an innovative structure which allows investors to choose their preferred level of gearing of between 0% and 50% Loan to Value (LTV), thereby offering a solution to accommodate a range of risk appetites. The fund aims to provide investors with returns of 15% (geared) and 10% (ungeared) through careful stock selection of large lot size assets which will be positioned to capitalise on the economic recovery in the UK based on a core/core-plus risk strategy.
According to LGP, the final split of investors shows demand for both geared and ungeared positions. To date, the fund has acquired assets totalling circa £200 mln, including the Fremlin Walk mall in Maidstone and the Guildford business park.
Cushman & Wakefield Corporate Finance acted as the exclusive placement agent.
