Legal & General acquires office development site in Peterborough

Legal & General acquires office development site in Peterborough

LGIM Real Assets (Legal & General) has agreed to forward fund a key city centre site in Peterborough, marking its twelfth Government Hub investment.

Acquired on behalf of Legal & General’s Limited Price Inflation Income Property Fund (the “Fund”), Legal & General has agreed terms to purchase the site in Peterborough and provide development funding to Bride Hall Developments, who are undertaking the construction.

The new 90,000 sq ft office building will be let on completion to around 1,000 members of staff from the Department for Environment, Food and Rural Affairs, including the Environment Agency, Natural England, Joint Nature Conservation, and HM Passport Office.

The office development is part of the £120m regeneration of Fletton Quays, being led by the Peterborough Investment Partnership and site developer Bride Hall. Occupation of the building is expected to take place in 2021. Legal & General’s investment into Government Hubs now stands at over £1.5bn, with today’s acquisition following the forward funding of two government buildings in Leeds last month.

“Our funding of the Fletton Quays site highlights our commitment to Government Hub deals. These align with our wider business objective to drive sustainable regional growth and aid job creation. As a long term investor, these investments also help us to back our pension promises, matching our long dated income requirements. We have a strong appetite to do more,” said Derek Gilby, Senior Fund Manager, at LGIM Real Assets.