Legal & General Capital and Legal & General Retirement have completed a record £1.1bn of property disposals in 2017 to date.
L&G’s share of proceeds from these deals has been £526m, meeting or exceeding targeted returns of 10-12% IRR.
The two funds are reinvesting the proceeds into UK secure long-term investments, such as L&G Retirement’s acquisitions of properties in UK cities that are being occupied by the Government Property Unit.
Most recently, Legal & General Retirement sold 70 Gracechurch Street, EC3, to Hong Kong-based Tenacity Group, delivering gross proceeds of £272m as part of its active management of the asset portfolio backing its annuity liabilities.
Legal & General Capital generated gross proceeds of £254m from transactions with a gross value of £817m.
Nigel Wilson, chief executive of Legal & General, said: “Strong demand from international buyers demonstrates that the UK is a great place to invest. Having invested £12bn to date, we are on track to invest £15bn of long-term capital in UK housing, urban regeneration, clean energy and business growth.”
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