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Legal & General Fund Raises Additional Equity
Legal & General Property’s LPI Income Property Fund has now raised total commitments of nearly £180 million (€204 million), following a closing of an additional £117 million (€133 million) in equity from three corporate pension schemes, including the Michelin Pension Plan.
The fund, which was launched in July 2010, focuses on sale-and-leaseback assets, primarily with government-backed, inflation-linked sources of rental income, as part of its goal to generate a real yield of 4.5 percent annually.
“This significant further equity injection reflects the strong appetite for the LPI Income Property Fund, as a second-generation long-lease fund, which has been designed around clients’ requirements,” comments Pete Gladwell, business development manager at Legal & General. “Indeed, we understand it remains the only fund in its peer group able to provide income streams over 20 years in length that provide annual LPI inflation, backed by purely investment