Yes

OFFICE SECTOR

We manage £1.8bn of office investments (as at end June 2008) through the balanced funds that we run. In addition to this we are the investment manager of, and a stakeholder in, the Arlington Business Parks Partnership, which has a GAV of £1.5bn (as at end June 2008).

Forecasting

Office stock is focussed towards geographic areas where demand is strongest and levels of employment are highest. Apart from areas such as the West End of London where development is restricted due to the number of conservation areas, there are limited restraints upon supply.

Limited restraints upon supply can lead to surges in development and as fund managers, we have to be closely aware of the economic cycle and the development supply-side response to increased demand for offices. We manage our development pipeline to ensure that, wherever possible, we are delivering buildings at the right time in the property cycle.

Our development team is responsible for securing planning consents and ensuring those schemes are financially viable, meeting the changing requirements of occupiers whose use of space has changed dramatically over the last 10 years.

 

Sustainable development

Legal & General Property seeks to be at the forefront of sustainable development, exceeding targets on sustainability put forward by Government. Sustainable development conserves resources and energy (both through the development process and through the creation of energy efficient buildings). It creates an environment in which people are happy to work and live.

 

"Legal & General seeks to be at the forefront of sustainable development"

We subscribe to the Code of Leasing practice, offering flexibility to tenants occupying the buildings we manage. Over the last two cycles, the average lease length on new lettings has dropped from 25 years to 15 years and latterly 10 years.

Regular liaison with our tenants ensures that we are aware of their requirements and issues affecting their businesses so that we can tailor asset management proposals which are mutually beneficial.