PGGM and Legal & General make first disposal from UK office joint venture

Legal & General and PGGM have sold 72 Broadwick Street, a mixed-use office and residential asset in central London for £87m (€98.4m).

The development was acquired by LGIM Real Assets in January 2015 for £67m. It was the first purchase for an office joint venture partnership between Legal & General Capital and Dutch pension fund manager PGGM.

The building, which has 54,100sqft of office accommodation, 11 apartments and a large basement car park, was sold to listed real estate investment trust Shaftesbury.

Legal & General said “the sale offers an attractive return against the partnership’s investment objective”, which is to generate an annualised net internal rate of return of 10%.

Nigel Fuller senior fund manager at Legal & General, said: “This is a fantastic deal for the partnership and testament to the strength of our central London office strategy.

“Through clever stock picking and active asset management, the team has delivered an exceptional outcome for our investors and strong returns.

“We will now seek to deploy this capital into other market opportunities where we see further value.”