Legal & General Capital (LGC)

LGC is the early-stage investment arm of Legal & General Group. LGC’s purpose is to generate long-term value by injecting new capital into three key sectors: Housing, Infrastructure (specifically urban regeneration and clean energy) and SME Finance (supporting small and medium-sized businesses). LGC creates synergies and opportunities among the different parts of the Legal & General Group.

LGC’s investments deliver assets with high returns for shareholder funds, create new investment funds for LGIM clients and offer assets which can be suitable to back LGR’s annuities.

One of the benefits of these direct investments is that we can invest money over a very long time horizon to match liabilities which we will hold for 30, 40 or 50 years.

Markets and business segments

Housing

There is currently a severe housing shortfall in the UK. The country needs at least 250,000 new homes each year.

Through our housing platform, we’re developing more homes to buy, introducing a new standard in modern rental accommodation and tackling house-building supply through modular construction. LGC has announced its recent acquisitions into later living as well as looking for new opportunities to increase the delivery of affordable homes. Overall, LGC’s housing platform is completely aligned with its vision; becoming a leading provider of homes by 2021.

LGC is committed to adopting a multi-tenure approach and investing in housing across the spectrum including: build-to-sell, build-to-rent, modular construction, later living, and affordable homes.

LGC recently launched our Legal & General Modular Housing business to deliver highly-sustainable precision-engineered homes through the modular housing factory based in Selby near Leeds. The homes are built using modern techniques of construction, in a high-tech manufacturing environment, on a moving assembly line, which will be constructed and fitted out in the factory before delivery to site.

LGC new modular house

Infrastructure

We’re committed to supporting the UK’s infrastructure projects, with a focus on Urban Regeneration and Clean Energy.

Infrastructure - Clean Energy and Urban Regeneration

Legal & General Capital (LGC) is committed to transforming our UK Cities for the better. Through our patient capital we can improve urban landscapes, creating jobs and significantly boosting the local economies.

With a growing population which is increasingly living and working in major towns and cities, the UK needs urban centres that are fit for purpose. We are already involved in some of the UK’s biggest regeneration projects and aim to become the market leader in UK regeneration funding through real estate led investments. Such projects thrive when they are built on strong, long-term and progressive public and private sector partnerships.

Infrastructure - Clean Energy

The next five to ten years will see transformational change in clean energy as technological advances and innovation deliver clean, affordable and reliable heat, power and transportation. We believe that electric vehicles, energy storage, smart grids and connected devices will help us to unlock the potential to use more renewable energy such as low-cost wind and solar power, while improvements in the energy efficiency of our buildings and local generation will reduce reliance on large, out-dated and expensive power stations.

LGC is creating long-term social and economic value by investing in the future of our energy system, with a focus on low cost generation technologies such as wind and solar. LGC is leading by example, embracing digital innovation and putting institutional investment behind cutting-edge, UK-based science and engineering solutions with the potential to scale-up and transform the global energy system. Ultimately we will enable UK consumers to enjoy affordable clean energy that is owned and financed by their UK pensions, savings and investments.

Countryside wind farm

SME Finance

UK economic growth relies on the success of small and medium sized businesses. Whether companies are looking to expand, launch new products, acquire another business or invest in new talent, growth can only come when there’s investment. Despite technology and digital representing the UK's fastest growing sectors in recent years, UK SME’s, scale-ups, start-ups and university spinouts have suffered acute equity funding gaps, disadvantaging them versus global peers, particularly those in the US.

Over the coming years we are seeking to enable over £10bn of funding into SMEs. Legal & General Capital supports the development of Alternative Finance markets, with an investment focus on mid-market corporate debt, asset-backed lending, trade finance, property finance, infrastructure debt, leasing; venture capital and growth equity.

Shot of pragmatic printingPragmatIC Printing Ltd

Long term investments

We aim to invest for the long term in economically and socially useful assets.

£15bn

direct investment programme with £10 billion invested to date at the end of 2016

We focus on direct investments in four key sectors:

  1. Housing
  2. Infrastructure (Urban Regeneration and Clean Energy)
  3. SME Finance

1

Aberdeen international business park
£127m investement, 335,000sq ft office space

Places for people
£252m, aquiring 4,000 homes, building 7,000 houses, 50 year lease

2

CALA homes
£210m investment (47% stake), further £200m for Banner Homes

3

Newcastle Science Central
£350m development

4

Leeds £162m regeneration project
200 acre mixed-use site with potential for 7,000 homes

Leeds modular homes factory
Located at Sherborn distribution park in Yorkshire

5

Media City, Salford
£503m investment, 50% ownership PRS Investment – 100s of new homes

6

Royal Liverpool University Hospital
£429m rebuild

English cities fund
Schemes in Liverpool, Plymouth, Canning Town, Salford and Wakefield: over 5.4m square feet of mixed-used space, brownfield land

7

Aberystwyth University
£43m development for student accomodation

8

CALA homes
£210m investment (47% stake), further £200m for Banner Homes

9

Cardiff city centre
£400m redevelopment joint venture

10

Bracknell
£200m regeneration partnership with Scroders

11

English cities fund
Schemes in Liverpool, Plymouth, Canning Town, Salford and Wakefield: over 5.4m square feet of mixed-used space, brownfield land

12

London Gateway port
£400m investment 30 year facility

13

English cities fund
Schemes in Liverpool, Plymouth, Canning Town, Salford and Wakefield: over 5.4m square feet of mixed-used space, brownfield land

14

Methodist care homes
£70m investment, 30-year lease

15

University of Southampton
£93m, 1,404 beds, 40 years income

16

Thames Valley Housing
£40m, 1,404 beds, 40 years income

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