Legal & General Capital and Dutch pension fund manager PGGM have announced the launch of a London Office joint venture partnership and successfully completed its first £67m (€90m) investment – 72 Broadwick Street in Soho.
The joint venture initially has an allocation of some £375m (€501.8bn) to invest.
“The joint venture model of investing in property is attractive as it enables co-investment with a trusted partner who has local expertise and knowledge, along with providing a high degree of control over the investment,” L&G said.
The joint venture has been set up to source attractive Central London office investments which provide superior growth prospects due to neighbouring infrastructure and regeneration projects, as well as significant asset management opportunities, the company added.
With a focus on impact investment, the partnership is said to be looking to integrate material environmental, social and governance (ESG) aspects throughout its assets, in turn realising a strong ESG performance.
Legal & General Property (LGP) will lead the acquisitions process and act as the fund manager for the joint venture.
“The joint venture will focus on office properties where LGP can use its specialist asset management skills to realise value through repositioning and redevelopment. The joint venture will be looking for assets ranging between £30m – £90m (€40m – €120m) which require significant improvement and where they can be part of a wider regeneration story,” L&G concluded.