L&G invests in Leeds government offices for €233m

Legal & General (L&G) has acquired a pair of office buildings in the centre of Leeds, UK, for £211 mln (€233 mln) from joint venture partners Canada Pension Plan Investment Board (CPPIB) and Hermes Investment Management. 

Totalling 377,730 ft2 (35,000 m2) of space, the two Grade A office buildings at Wellington Place have been fully let to The Secretary of State for Communities & Local Government on behalf of HMRC and NHS Digital.

The deal, executed with financial backing from L&G Retirement, represents L&G's 10th government hub across the country and the largest regional pre-let in a decade, according to the firm.

'These investments are a perfect match for our UK pension commitments, providing high-quality long-term investments while also aiding vital regional regeneration,' said Gordon Aitchison, director of investment and development at LGIM Real Assets.

'As the second largest financial hub outside of London, with a strong and growing work force, our investment in Leeds will have a meaningful impact on the region, providing quality office space and creating tens of thousands of jobs,' Aitchson added.

L&G said it had directly invested around £1.1 bn into Leeds in recent years through major urban regeneration projects and the delivery of housing, social care and infrastructure. Other key investments include the redevelopment of Headingley Cricket Stadium; build-to-rent scheme Mustard Wharf; and the mixed-use Thorpe Park Leeds project.

Leeds has the largest growing workforce outside London, L&G said, but suffers from an extremely low supply of Grade A office space.

Upon completion, the entire Wellington Place scheme is expected to accommodate 12,000 people living and working within the development.

Knight Frank and Lewis Ellis advised L&G.


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