Legal & General has invested GBP750 million in UK Infrastructure and direct lending in Q1 2016, with the completion this week of GBP250 million of financing for a commercial infrastructure deal.
This adds to GBP70 million in a student accommodation infrastructure deal earlier this month and GBP245 million for Transport for London’s (TFL) new premises in Stratford’s new international Quarter in January. The investments provide secure long-term fixed and inflation-linked cashflows to back annuity payments to UK pensioners.
Kerrigan Procter, Managing Director of Legal & General Retirement, says: “We have a strong pipeline of UK infrastructure and UK direct lending transactions as demonstrated with our completion of GBP750m of investment so far this year, which we use to back pension payments to UK pensioners in our GBP44bn annuity portfolio. We are delighted to be able to back pension promises to UK pensioners with such productive real investment in the UK economy. We see huge potential for growth as UK pension funds transfer their assets and liabilities to us and we in turn invest in real UK assets. ”
Eleanor Nasar, Chief Investment Officer of Legal & General Retirement, says: “The deals this week combined with the GBP245 million TFL deal and other direct lending, including our lifetime mortgage business, mean we’ve secured GBP750m of direct investment across a range of UK sectors year to date. This is a fantastic start to 2016 and shows our ability to continually find value through our strong and diverse asset sourcing capabilities across the group where LGR benefits from its close links with LGIM and Legal & General Capital.”