L&G has bought Quarry House in Leeds for £243m from R20, EG can reveal.
It marks the investor’s 11th and biggest government hub acquisition to date, bringing the organisation’s total amount invested into government programmes to over £1.5bn.
The 373,913 sq ft office building, located to the east of the city centre, has been let to the Secretary of State for Housing, Communities and Local Government for 25 years, on behalf of the DWP.
Tom Roberts, head of strategic investment at LGIM Real Assets, said: “Our acquisition of Quarry House highlights the continued success – and our commitment to – the Government Hub programme. We have a very strong appetite to secure more. Aiding regional regeneration and supporting employment and productivity growth remains a key driver for us.”
Quarry House marks L&G’s second hub investment in Leeds in a month, the first of which EG revealed last month when the investor bought 7-8 Wellington Place from joint venture partners Hermes Investment Management and Canada Pension Plan Investment Board.
Speaking to EG following the acquisition of 7-8 Wellington Place, L&G’s director of investment and development Gordon Aitchison said L&G’s interest in the government hubs programme was because they provided long-term income streams for the investor.
He said the deals, for both L&G and the GPA, are a “win-win situation”, adding: “We are looking for the best and greatest covenants. The better the covenant, the more we can pay for it and the less rent they’ll pay.”
JLL and Clifford Chance advised L&G on the acquisition of Quarry House.
To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette
