LGIM offloads Leicester leisure park for £25m

Legal & General Investment Management (LGIM) has sold a leisure park in Leicester for £25m.

Meridian Leisure Park – which is anchored by Vue Cinemas and Hollywood Bowl – was acquired by London-based investor Greenridge Opportunities.

The leisure park comprises a gross internal area of 155,071 sq ft across a 19.8-acre site southwest of Leicester city centre. Other tenants at the scheme – which is 99% let – include David Lloyd, Nando’s, Five Guys, Burger King, Pizza Hut, and Frankie & Benny’s.

Meridian Leisure Park has been owned by LGIM’s Leisure Fund since 2002, and has benefitted from a number of new leases and regears during this period.

The park’s income benefits from rental indexation or fixed uplifts and a term certain of approximately 12 years.

Bik Bhuptani, partner at Greenridge said: “We are excited about the addition of Meridian Leisure Park to our portfolio. This acquisition perfectly aligns with Greenridge Opportunities LP’s strategy of investing in high-quality, income-generating assets. The park’s robust tenant mix and prime location underscore our commitment to identifying and capitalising on unique opportunities in the leisure sector. We see significant potential for value creation and look forward to enhancing the park’s offering, further cementing its status as a key leisure destination in the East Midlands.”

Andrew Ferguson, senior fund manager of the Leisure Fund at LGIM, added: “The leisure sector has been tested over the past few years in the face of wider economic challenges, particularly within the cinema market – however, good quality, well managed leisure schemes in prime locations continue to remain resilient; Meridian Leisure Park is testament to this. As the sector is stabilising once again, with a positive pipeline of films over the next three to five years, we hope and expect to see a strong rebound for the cinema market.”

Edward George, partner at Montagu Evans, which advised LGIM, said: “This is an exceptional transaction and an important benchmark for demonstrating liquidity in the sector. LGIM is one of a number of institutions looking to free up capital for new opportunities and portfolio-wide improvements, including ESG commitments. It sets the tone for a number of leisure park transactions expected over the next 12-18 months as the market recalibrates.”

Greenridge Opportunities was advised by Savills for the transaction.