Legal & General has agreed to forward fund the development of Unity Square in Nottingham as HM Revenue and Customs’ (HMRC) latest regional hub, its eighth UK government office deal. The development is being undertaken by Peveril Securities and its joint venture partner Sladen Estates.
Financial details were not disclosed.
'This is a great deal for us and will have a meaningful impact on Nottingham, creating new jobs and driving economic growth,' said Gordon Aitchison, director, investments and development at LGIM Real Assets. 'This deal is the latest in a line of successful acquisitions of such government-backed investments and serves to make a valuable contribution towards matching our continued appetite for secure long income investments.'
HMRC has entered into a 25-year pre-let on the development for its Nottingham Regional Centre. It is set to open in summer 2021 and Phase 1 will accommodate around 4,000 full-time equivalent employees.
Legal & General has agreed to forward fund the construction of the development on behalf of Legal & General Retirement.
The scheme is also set to advance the £250 mln Southern Gateway regeneration project. In three years’ time, the landscape around the train station will be transformed, with a business district surrounding the HMRC hub within an area of the city in need of significant redevelopment.
'There is significant long-term investment in this area of the city. Nottingham Train Station was the catalyst and coming up is intu Broadmarsh’s forthcoming redevelopment along with other significant schemes expected over the next couple of years,' said Ralph Jones, MD of Peveril Securities.
JLL acted for HMRC.