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LONDON (Alliance News) - The unit that manages Legal & General Group PLC's main investments has partnered with Dutch pension fund manager PGGM to launch a London office joint venture with about GBP375 million to invest initially, according to a statement on Wednesday.
The joint venture has completed its first investment, buying 72 Broadwick Street in Soho for GBP67 million, representing a net initial yield of 4.7%.
Legal & General Capital is the unit that formed the partnership.
Legal & General Property, part of Legal & General Investment Management, will act as the fund manager for the joint venture. It will look for assets ranging between GBP30 million and GBP90 million "which require significant improvement and where they can be part of a wider regeneration story".
Laura Mason, director of direct investments at Legal & General Capital, said joint ventures are a good way for pension funds and sovereign wealth funds to invest in the UK's infrastructure, direct investments and property.
"Today?s announcement is an excellent example of what can be achieved by partnering with forward-thinking international capital, and I would expect many more joint ventures of this type to follow," Mason said.
The news follows the announcement earlier this month that L&G and PGGM had partnered together to buy the Bishopsgate Long Term Property Fund Unit Trust for around GBP370 million.
Legal & General Group shares were up 0.5% at 265.90 pence on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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