Legal & General to fund government hub in Nottingham, UK
November 17, 2018 – British financial services groups Legal & General has agreed to fund the development of Unity Square in Nottingham as the regional hub of HM Revenue and Customs (HMRC).
The project is being implemented by Peveril Securities and its joint venture partner Sladen Estates.
HMRC has entered into a 25-year pre-let on the development for its Nottingham centre.
The centre is expected to open in 2021 and Phase 1 will accommodate 4,000 full-time equivalent employees.
Legal & General has agreed to forward fund the construction on behalf of Legal & General Retirement, which invests in long-term UK assets to generate income streams to meet its commitments to pensioners.
The scheme is set to take forward the £250m Southern Gateway regeneration project.
In three years, a business district will be established surrounding the HMRC hub, transforming the landscape around the train station.
LGIM Real Assets investments and development director Gordon Aitchison said: “This is a great deal for us and will have a meaningful impact on Nottingham, creating new jobs and driving economic growth.
“This deal is the latest in a line of successful acquisitions of such government backed investments and serves to make a valuable contribution towards matching our continued appetite for secure long income investments.”
LGIM Real Assets, a division of Legal & General Investment Management (LGIM), invests and manages assets across commercial property, private residential, infrastructure and property lending, and corporate credit.
Sladen Estates CEO Nick Sladen said: “HMRC’s decision to place its East Midlands and 13th regional hub in the heart of Nottingham shows the government’s confidence in the city and, more importantly, the ability of the development team and Nottingham City Council to deliver – above other locations which could have been in the running.”
Peveril Securities Jones managing director Ralph Jones said: “There is significant long-term investment in this area of the city. Nottingham Train Station was the catalyst and coming up is intu Broadmarsh’s forthcoming redevelopment along with other significant schemes expected over the next couple of years.
“It is an exciting time for Nottingham with many significant schemes on the horizon and cranes expected on the Unity Square site in the next 12 months.”
Property advisory firm JLL acted for HMRC.