LONDON, 8 February 2016 – CBRE Global Investors has acquired a prime retail portfolio comprising four high street assets on behalf of clients from Legal & General Property’s Life Fund for £37.04 million, which reflects a net initial yield of 3.9% p.a.
The assets are all located in the wider South East region and occupy excellent trading positions in busy and affluent retail centres: High Street, Guildford; North Street, Guilford; The Promenade, Cheltenham; and Market Hill, Cambridge. The portfolio has an average unexpired term of approximately nine years, and tenants include M&S, Waterstones, GAP, Jack Wills and Hobbs.
Hannah Marshall, Fund Manager for the CBRE UK Property Fund at CBRE Global Investors, commented: “The continued strong performance of regional cities such as Cambridge, Cheltenham and Guildford makes these prime high street assets an excellent strategic acquisition for our clients.”
James Whitehill, Senior Fund Manager at Legal & General Property, commented: ” We have a clear investment rationale of disposing of mature assets in order to recycle capital into properties where we can use our asset management skills and capability to generate superior returns for our investors. JLL executed a well thought out marketing strategy and delivered strong pricing for the fund.”
JLL acted for Legal & General Property on the portfolio sale and CBRE Global Investors was advised by Fawcett Mead on its acquisition.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $89.0 billion in assets under management* as of December 31, 2015. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
Past performance is not a guarantee of future performance.
CBRE Global Investors (UK Funds) Limited is authorised and regulated by the Financial Conduct Authority (FCA).
LGIM Real Assets:
LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £717bn in assets on behalf of over 3,100 clients (30 September 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has an aggregate asset value of £19.9bn (30 September 2015) and is responsible for the division’s direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.
LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £17.5bn (30 September 2015). These funds include:
· Balanced Funds
o Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund
· Specialist Pooled Funds
o The Leisure Fund Limited Partnership; Industrial Property Investment Fund; Arlington Business Parks Partnership; and the English Cities Fund
· Single Asset Vehicles
o Bracknell Regeneration Partnership; Central Saint Giles Partnership.
LGIM Infrastructure has concluded 14 debt investments to date across all key infrastructure sectors and has a total AUM of around £1bn.
CLL has now invested a total of over £1.5bn across 18 deals. Transactions include eight loans to the social housing sector, two loans to the student accommodation sector, two hotel debt deals and two loans to the care home market.