L&G continues to lead investment drive into UK's built environment, transacting almost £14bn in five years
Legal & General’s Real Assets platform announces that it has secured almost £4 billion of property and infrastructure deals and committed to significant UK urban regeneration schemes with a value of over £1.6 billion in 2015, once again making it one of the most active investors in the UK’s built environment.
In January 2015, Legal & General’s direct investment capabilities in property and infrastructure were brought together as a single business for the very first time, allowing the team to capitalise on cross-sector synergies and leverage its sector specialist in-house expertise. This has resulted in another stellar year for the investment management platform, marked out in particular by its ability to attract new sources of capital, be in the vanguard with emerging sectors and contribute significantly to the UK’s future economic growth.
In 2015 Legal & General committed to significant UK urban regeneration schemes with a value of over £1.6 billion, executing a number of very large and complex deals in an exceptionally quick timeframe. Working closely with the government’s Regeneration Investment Organisation (RIO), notable deals included MediaCityUK in Salford, Thorpe Park in Leeds and Central Square in Cardiff, demonstrating its commitment to working with both public and private sector bodies to drive forward positive change throughout the UK.
Taking a highly selective and fresh approach to investment opportunities, Legal & General has continued to grow its fund investment platform, increasing its AUM by almost 50% over the past five years and securing almost £14 billion of transactions. Supported by its investment performance track record - achieving consistent house total return outperformance of the IPD aggregate benchmark over the one, three and five years to 30 September 2015 - Legal & General has continued to have capital flows and has been able to attract new business from other underperforming funds throughout 2015.
Bill Hughes (photo), Head of LGIM Real Assets, said: “Positive recognition of our decision to bring property and infrastructure together in one place, 2015 has been marked by our ability to capitalise on the synergies that exist across our business. This decision has put us in an excellent position to respond to Government’s efforts to encourage private capital to invest in improving the totality of the built environment.”
For further information, please contact:
Head of Communications, LGIM Real Assets
Tel: 020 3124 2777
PR Manager, LGIM Real Assets
Tel: 020 3124 2823
Notes to editors:
LGIM Real Assets:
LGIM Real Assets is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £717bn in assets on behalf of over 3,100 clients (30 September 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has an aggregate asset value of £19.9bn (30 September 2015) and is responsible for the company’s direct investment capabilities in property and infrastructure. The company is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.
LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £17.5bn (30 September 2015). These funds include:
- Balanced Funds
- Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund
- Specialist Pooled Funds
- The Leisure Fund Limited Partnership; Industrial Property Investment Fund; Arlington Business Parks Partnership; and the English Cities Fund
- Single Asset Vehicles
- Bracknell Regeneration Partnership; Central Saint Giles Partnership.
LGIM Infrastructure has concluded 14 debt investments to date across all key infrastructure sectors and has a total AUM of around £1bn.
CLL has now invested a total of over £1.5bn across 18 deals. Transactions include eight loans to the social housing sector, two loans to the student accommodation sector, two hotel debt deals and two loans to the care home market.