L&G forms real assets division to unite property and infrastructure teams
Legal & General Investment Management (LGIM) today announces that Bill Hughes has been promoted to Head of Real Assets – a new role, under which the company’s direct investment capabilities in property and infrastructure will be brought together as one team for the very first time. The news comes as part of a major restructure of LGIM’s leadership team, as it looks to drive future business growth across its key product areas, both in the UK and internationally.
Joining the business at the end of 2007 as Managing Director of Legal & General Property (LGP), Bill Hughes has overseen the doubling of the company’s real estate assets under management, growing from circa £7.5bn (in 2008) to over £15bn as at the end of 2014. He has also headed up the establishment of its lending arm, Commercial Lending Limited (CLL), which has concluded a total of £1.08 billion of debt deals to date across 12 transactions. In the past two years, LGIM’s infrastructure team has concluded around £800m of loans across 11 deals.
Building on this success and reflecting the growing connection between the property and infrastructure divisions, with the former rapidly widening its investment universe to include alternative asset classes, such as student accommodation and healthcare, the newly expanded team will look to capitalise on cross-sector synergies, leveraging its sector specialist in-house expertise.
On behalf of its savings and pension schemes, L&G has already invested £4.6bn of an additional £15bn commitment to UK property and infrastructure, as it looks to support projects up and down the country including housing, healthcare, elderly care, transport, energy, education and student accommodation. Part of a logical handover of infrastructure investment from banks to insurance companies and pension funds, the company sees its growing, long term investment in the country’s fabric as a natural match for its long-dated liabilities.
Bill Hughes, Head of Real Assets at LGIM, comments: “Demonstrating L&G’s continued commitment to being at the forefront of sophisticated understanding and investment into new emerging sectors, this change allows us to further capitalise on the synergies that exist across our infrastructure and property businesses. Like real estate, we recognise that infrastructure offers attractive inflation protection and stable yields against which we can match our long-term pension liabilities. With an indebted public sector, institutional investment in this area will be a differentiator for future UK economic growth and success.”
Mark Zinkula, Chief Executive of LGIM, said: “LGIM has been growing rapidly and enhancing its product set and investment solutions for its customers. Clients like our products and services, but increasingly want to access them via integrated solutions, as well as individually. Today’s management changes will drive this forward and help to deliver growth.”
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For further information, please contact:
PR Manager, Legal & General Property
020 3124 2777
Notes to editors:
Legal & General Property:
Legal & General Property (LGP) 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 approximately £465bn in assets on behalf of over 3,100 clients (30 June 2014) and provides products and solutions spanning all asset classes. LGP is the third 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 £14.5bn as at 30 October 2014. These funds include:
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.
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance. Owing to its size, diversity and penetration, it benefits from best-in-class banking and property contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities.
Taking a client-centric approach, the business places the highest priority upon integrity and transparency, leveraging the significant resources provided by the wider LGIM platform. Protecting the medium to long term value of its portfolio, as a leader in sustainability, green principles are embedded into every property and investment decision.
Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. In particular, the Company has a major development platform, responsible for delivering community-focused projects ranging from West End landmark buildings to significant town-centre retail and leisure regeneration schemes.
Forming part of the Group’s larger UK housing and infrastructure investment strategy, LGP also continues to participate in a growing range of supply side housing activities, including financing affordable homes, the house building sector, urban regeneration, student accommodation and care homes.