Legal & General’s principal balance sheet businesses, Legal & General Capital and Legal & General Retirement have completed a record £1.1bn of real asset disposals in 2017 to date, of which around £1bn has been to international investors.
Legal & General’s share of gross proceeds from these transactions has been £526m.
Legal & General Retirement’s (LGR’s) recent sale of 70 Gracechurch Street delivered gross proceeds of £272m as part of its active management of the asset portfolio backing its annuity liabilities.
In addition, Legal & General Capital (LGC) generated gross proceeds of £254m from transactions with a gross value of £817m. All full asset disposals met or exceeded targeted returns of 10-12% internal rate of return.
Among prominent transactions were the Arlington Business Parks Partnership deal, which generated £443.2m and the sale of a 25% stake in Bishopsgate Property Fund, which generated £84.9m.
Proceeds are being reinvested alongside other Legal & General funds in its UK regeneration programme.
Nigel Wilson, chief executive at 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.”