PGGM, the €180 billion Dutch pension fund and Legal & General (L&G), have announced a £375 million London office joint venture, and completed their first investment in central London.
The joint venture partners purchased 72 Broadwick Street, Soho, for £67 million, giving an initial net yield of 4.7%. The office property is let to the National Magazine Company, and it will be close to a new Crossrail station when it opens. The joint venture is looking for Central London office properties with positive growth prospects due to infrastructure and regeneration projects, in addition to asset management. The joint venture will also aim to integrate environmental, social and governance (ESG) into asset performance.
L&G Capital director of direct investments, Laura Mason, commented: “The UK is a great place to invest, pension funds and sovereign wealth funds all want to invest here in infrastructure, direct investments and property.” PGGM senior investment manager, Mathieu Elshout, said: “The London Office joint venture yet again allows us to take advantage of the opportunities that exist in the UK for those with the right approach to investment and skills to proactively enhance its portfolio. This partnership is another example of our ambition to have a high degree of control over our investments.”