14 November 2017
London
Reporter: Theo Andrew

L&G settles on UK retirement villages for £102 million


Legal & General has acquired four UK retirement villages from Helical, for £102 million.

The portfolio, not yet fully developed, will comprise of 694 units, located in Liphook in Hampshire; Faygate in West Sussex; Exeter in Devon; and Great Alne in Warwickshire.

Helical will transfer £46 million of debt secured against the portfolio to Legal & General, and will receive £51 million of net sale proceeds in two instalments.

According to Helical, the sale represents a 13 percent discount from its book value of £117 million.

The sale is the largest element in Helical’s non-core disposal programme, reducing its group debt and loan-to-value ratio of 5 percent.

Non-core assets now comprise 4 percent of Helical’s portfolio, as the firm focuses more on core office and logistics assets in London and Manchester.

Gerald Kaye, CEO of Helical, said: “Whilst we have generated good profits in the past from our retirement village portfolio, we firmly believe that now is the right time to sell our interests, reduce our gearing and focus solely on our core sectors where we expect to be able to generate stronger shareholder returns in the future.”

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