Legal & General has completed the £474m sale of all of the properties held by the Bishopsgate Property Fund.
L&G Capital and PGGM bought the 24-asset portfolio in 2014 for £360m, which means the sale value is almost double the MSCI reported capital value growth over the period.
In the second half of 2021, LGIM Real Assets sold 11 assets across all sectors in London and Brighton to individual purchasers for a combined sale value of £169.5m.
Despite the name, the properties included 101 St Martin’s Lane, WC2 (pictured); 95-97 Clapham High Street, SW4; and iScene in Ilford.
LGIM Real Assets estimates that its 128 asset management initiatives over the joint venture’s seven-year ownership created approximately £57m of added value. it completed 65 new lettings, 13 lease renewals, 20 lease regears, 19 reversionary rent reviews and 11 dilapidations settlements.
Will Edwards, head of emerging strategies at LGIM Real Assets, said: “We are delighted to have successfully concluded the disposals programme necessary to conclude the Bishopsgate Property Fund strategy within our targeted timeframe and to have delivered a geared return significantly in excess of the investment objective.”
Dirk Bootsma, senior director for PGGM, added: “We are very pleased with the successful execution of the joint venture strategy. The value-add initiatives have been very well managed in the unique market circumstances.”
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