March 6, 2014 / 1:40 PM / 4 years ago

L&G become RBS's landlord in 550 mln stg property deal

LONDON, March 6 (Reuters) - British life insurance and pensions provider Legal & General has bought a portfolio of 55 properties let to state-backed Royal Bank of Scotland in a 550 million pound ($920.18 million) deal, it said on Thursday.

The portfolio, which includes private bank Coutts’s headquarters in central London, comprises of 41 retail and banking units, 10 office buildings and four industrial sites across the UK, with one asset in Dublin.

It is predominantly let to RBS until 2037 and was bought from British property group Telereal Trillium. CBRE acted for Telereal Trillium while DTZ advised L&G.

“This is one of the largest acquisitions to be successfully undertaken by a UK fund in recent years,” said Gordon Aitchison, director of investment and development at L&G Property.

“The bond like quality and duration of the income is exceptionally attractive as a match for L&G’s long dated liabilities,” he said.

L&G has been a keen investor in British infrastructure as such assets offer steady rental income, matching long term liabilities to retirees. It said on Wednesday that it was seeking more acquisitions in 2014.

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