LGIM Real Assets (Legal & General) has announced it has acquired Atlantic Quay 3, the central Glasgow Scottish court and tribunal building, from the Moorfield Group for £50m.
Legal & General has bought the asset on behalf of its LPI (Limited Price Inflation) Income Property Fund, bringing its investment portfolio to £1.1bn.
Atlantic Quay 3 is a 79,500 sq ft Grade A modern office building. It is fully let on a 25-year lease to the Scottish Courts and Tribunals Service. Based in the heart of Glasgow’s International Financial Services District, the property sits in a prime riverside location and is just a short walk from Glasgow’s main shopping, leisure and entertainment districts, as well as accessible to all major road, rail, air and bus links.
The Atlantic Quay area has recently added some significant new occupiers, including the Government Property Unit’s selection of Atlantic Square for a 300,000 sq ft regional hub.
Legal & General was represented by Savills and Addleshaw Goddard on this deal.
Derek Gilby, senior fund manager at LGIM Real Assets, said: “We are delighted to have secured the Scottish Courts and Tribunals Service as a tenant, boosting the public sector covenants for the Fund on this excellent office investment, whilst providing an inflation linked income stream and taking the size of the Fund to well in excess of £1bn. The LPI Fund has consistently delivered its performance targets since its launch in 2010 and offers the high credit quality and longevity of income that risk-averse investors are seeking in this market.”
Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets, added: “This area of Glasgow has witnessed significant regeneration in the last few years and as a result the Atlantic Quay area has become a strong focal point on the city’s commercial offering. This acquisition is a very compelling deal for the Fund, offering long-term growth and secure income prospects.”