Legal & General Property and the Edinburgh-based property developer Kenmore Property Group have set up a joint venture to establish ARC Property Fund, a new UK regional core plus office fund that will acquire, refurbish and asset manage a multi-let regional office portfolio across the UK. ARC has been structured as a Jersey Property Unit Trust and will acquire an initial portfolio of about £150 mln (EUR 222 mln). Once that point is reached, the fund will be opened up to other third party equity investors 'with the aim of eventually growing the fund to about 1 bn of assets', the parties said. The life of the fund will be 15 years.
Legal & General Property and the Edinburgh-based property developer Kenmore Property Group have set up a joint venture to establish ARC Property Fund, a new UK regional core plus office fund that will acquire, refurbish and asset manage a multi-let regional office portfolio across the UK. ARC has been structured as a Jersey Property Unit Trust and will acquire an initial portfolio of about £150 mln (EUR 222 mln). Once that point is reached, the fund will be opened up to other third party equity investors 'with the aim of eventually growing the fund to about 1 bn of assets', the parties said. The life of the fund will be 15 years.
Legal & General will operate ARC and act as fund manager and placing agent. Kenmore will act as asset manager with principle responsibility for acquisitions, sales, refurbishments and 'added-value initiatives'. ARC will principally invest in assets in the centre of the UK's top 10 regional towns and cities, with 80% outside the South East and the rest within the region.
ARC made its first acquisition on 22 March with the purchase of Tithebarn House in Liverpool for £14.87 mln. The property provides almost 9,400 m2 of office space over seven floors and has 850 m2 of retail space on the lower ground floor.