Legal and General Property has raised £67m of capital for its leisure fund in order to support its investment strategy.
The new equity has been raised at a premium to NAV and expands the fund’s investor base to around 30 unit holders.
It is one of the highest yielding unlisted funds in the UK, with a void rate of around 3% and an unexpired lease term of over 12 years. The fund also benefits from a low cost of debt which, at 3.5%, enables it to deliver an annual income distribution in excess of 6%.
Andrew Ferguson, fund manager of the Fund, said: “With the cinema and restaurant sectors performing well in recent years and demonstrating strong recession-proof characteristics, particularly the former, which has grown its revenue and footfall year on year during the economic downturn, we continue to believe that there is significant value to be found in the leisure market.”
“Offering good, secure income returns, with long leases off lower base rents, the leisure sector therefore provides an attractive alternative sector for investment.”
