L&G Property in talks to acquire Lloyds assets
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Legal & General Property is said to be holding talks to acquire distressed property assets from part-nationalised lender Lloyds Banking Group.
L&G Property is thought to be considering joint ventures and acquisitions of some of the distressed property assets Lloyds Group is holding on its balance sheet.
It is understood that L&G Property is well-positioned to broker a deal like this and work with banks in this way, though the firm has declined to comment on whether it is holding discussions with Lloyds Group or not.
The appetite for acquisitions at L&G Property is clearly strong as since April it has bought property assets across the UK and across all sectors totalling £110m.
The acquisitions so far form part of the company’s £600m drive to capitalise on potential investment opportunities emerging from current market conditions.
L&G Property has bought over nine assets within the office, retail and industrial sectors including a freehold Southampton office building bought for approximately £21.3m and let to Skandia Life at a rental of over £2m per annum.
Other acquisitions include a Tesco superstore bought for £13.2m, a House of Fraser department store acquired for £10.5m, and two retail units let to Waterstones and Game bought for £10.05m.
Bill Hughes, managing director of L&G Property, said of these acquisitions: “We have said for some time that for investors with cash ready to be deployed, there will be some outstanding opportunities to acquire strong assets at good prices, while taking advantage of long unexpired lease terms to high quality covenants.
“These acquisitions are a clear reflection on the network of contacts we possess within the business and the agility of our teams to capitalise on opportunities as they arise.”
