Legal & General Property is buying Kames Capital’s The Light leisure scheme in Leeds for just under £100m – a 7% yield.
Kames put a 50% stake up for sale in December 2012 for £52m – a 6.5% yield – to avoid breaching fund regulations.
However, L&G is understood to have placed the entire 270,000 sq ft scheme under offer this week.
PRUPIM and the Crown Estate also bid for the scheme.
A source said: “Kames wanted to stay involved with a half share, but that didn’t interest any of the buyers.
“L&G obviously feels it can make more of a mark on the scheme by having full control.”
The Light was developed in 2001 and produces income of around £7.3m pa.
Tenants include a 14-screen Vue cinema, a 147-bedroom, four-star Radisson BLU hotel, Virgin Active gym, plus shops and restaurants including Superdry, O’Neill, Browns, Tiger Tiger, Prezzo, Zizzi and Nando’s. There is also a 420-space multi-storey car park.
The sale was prompted because the value of The Light exceeded the 10% single-asset threshold of Kames’ Aegon UK Property Fund.
Knight Frank is acting for Kames; Montagu Evans is representing L&G.
