LEGAL & General has acquired a Glasgow building, home to the Scottish Courts and Tribunals Service, for £50 million.

Atlantic Quay 3, based in the city’s International Financial Services District, has been bought by the pension and investment giant on behalf of its LPI (Limited Price Inflation) Income Property Fund, taking the value of fund’s investment portfolio to £1.1 billion.

The Clydeside property, which had been owned by Moorfield Group, spans 79,500 square feet, and was leased for 25 years by the courts service in October after a multi-million-pound refurbishment.

The broader Atlantic Quay area, which is close to Glasgow city centre’s main shopping and entertainment districts, has recently welcomed major tenants. These include the Government Property Unit, which recently chose Atlantic Square for a 300,000 sq ft regional hub.

Derek Gilby, senior fund manager at LGIM Real Assets (Legal & General) said: “We are delighted to have secured the Scottish Courts and Tribunals Service as a tenant, boosting the public-sector covenants for the Fund on this excellent office investment, whilst providing an inflation linked income stream and taking the size of the Fund to well in excess of £1bn.

“The LPI Fund has consistently delivered its performance targets since its launch in 2010 and offers the high credit quality and longevity of income that risk-averse investors are seeking in this market.”

Added Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets: “This acquisition is a very compelling deal for the Fund, offering long-term growth and secure income prospects.”