LGIM Real Assets (Legal & General) said on Monday that it has acquired Broadway Plaza in Birmingham, on behalf of its Leisure Fund, from Aviva Investors, for £46.95 mln (€53 mln).
The acquisition lifts the value of the fund to over £600 mln.
The 280,000 sq ft (26,000 m2) leisure development is anchored by a brand-new Odeon Luxe Cinema, Hollywood Bowl, along with an independent casino. The scheme, which is also soon to open an indoor adventure golf offer, generates a total net income of approximately £3.5 mln per year.
Odeon Cinemas and Hollywood Bowl have both recently committed to new 15- and 25-year leases respectively giving a weighted average unexpired lease term on the asset of 14 years to expiry with over 80% of the income geared to indexation or fixed growth.
Formed in 2002, the Leisure Fund has over £600 mln of assets under management, comprising 18 prime leisure assets across the UK and a major development scheme in York.
Legal & General’s Leisure Fund was advised by KLM Retail, while Aviva Investors was advised by Knight Frank.
'This is a great addition to the fund, presenting an opportunity to improve a dominant edge of city leisure scheme with strong anchor tenants,' said Andrew Ferguson, senior fund manager of Legal & General.