Legal & General and Canada Life agree Galaxy Portfolio

The Galaxy Portfolio which comprises over 1 million sq ft of assets across the main user sectors has been sold by Legal & General Property to Canada Life.

The 11 assets achieved a price of £146m and gives the purchasers an initial yield of 6.75%. The portfolio is well balanced in use and geographic terms and is let to a number of well known tenants such as B&Q, Wickes, Poundland, Superdrug, Freemans plc and Whirlpool.

Michael Barrie, Director of Balanced Funds at Legal & General Property said "The original portfolio of 15 assets was assembled in response to increased cash requirements effecting most Open Ended Property funds at the end of 2007. We had a very competitive bidding process which resulted in 10 offers for this sought after portfolio. During the due diligence period it was obvious to us that the liquidity pressures were reducing and with the co operation of Canada Life and to the mutual benefit of both parties we were able to reduce the number of assets and the size of the transaction."

Michael White, Property Investment Director at Canada Life commented "We are delighted to have successfully completed the acquisition of this portfolio. Galaxy, comprising of prime institutional assets, nicely fulfils our current and continuing requirement for quality, long dated, secure income investments to support the Company's growing annuity business."