It has announced this on behalf of its LPI (Limited Price Inflation) Income Property Fund and has completed the purchase from Lincam Pentland Ltd, a subsidiary of S1 Developments Limited.
The purchase of the proposed 315-room student residence was completed on a forward-funding basis for a price of around £35m.
The property will be leased to the university on a 20-year, full repairing and insuring lease on completion of the development.
The scheme is being carried out by S1 Developments and is scheduled for completion in September 2020.
- LGIM Real Assets provides £50m to support development of 1,100 homes
- L&G to deliver new Glasgow hotel
- Planning granted for 407-bed Leeds student scheme
Derek Gilby, senior fund manager of the LPI Income Property Fund, said: “The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to university.
“We believe that quality facilities that are affordable for students can help to provide a quality education.
“This is an excellent buy for the fund, offering a secure long-term income stream, which provides a hedge to inflation from a top investment grade university.”
Dan Teague of S1 Developments Limited, added: “We are delighted to have concluded this transaction with Legal & General, who are a perfect partner for ourselves.
“We will be providing exceptional accommodation for the university in time for the 2020/21 academic year.
“We are known for providing best-in-class housing and we hope for the same reputation within the commercial property world.”