Legal & General Property acquires One Whitehall Quay

Legal & General Property ("LGP") announces it has acquired One Whitehall Quay in Leeds for its UK Property Unit Trust Fund ("the Fund") from Britannia Invest A/S for £14.38 million. The purchase price reflects a net initial yield of 7.88%.

The 51,182 sq ft office building is currently let to Mercer Ltd and MWB Business Exchange Centres Ltd on an unexpired lease term of 6.25 years and represents the largest multi-let office investment transaction in Leeds in the last year. The passing rent is £1,197,500 per annum which equates to £21 per sq ft reflecting a 20% discount to prime rents in Leeds and offering good scope for future growth.

Established just over five years ago, the Fund has continued to receive strong investor support in the early part of 2011 with the AUM of the Fund rising for the first time to exceed £500 million. Investing in the UK commercial retail estate market, the Fund's strategy is to provide long term capital growth by focusing on property selection and active asset management.

Matt Jarvis, Fund Manager, Property Unit Trust, comments: "Acquired at an attractive yield, One Whitehall Quay represents an excellent opportunity for value add asset management initiatives. We intend to reposition the property over the medium term with a view to creating one of the key Grade A offices in Leeds city centre. This transaction is in line with the Fund's long term preference for town centre office properties and we continue to seek similar opportunities."

Jones Lang LaSalle advised on this acquisition.