LGIM Real Assets, on behalf of the Industrial Property Investment Fund (or, “the Fund”), announces that it has completed an equity raise, as it continues to identify value add and purchase opportunities that will drive investor performance and align with an ambitious ESG agenda.
9 Sep 2021
The Fund has completed an over-subscribed £150m equity raise, testament to the Fund’s exceptional track record, market access and resilience amidst the coronavirus pandemic.
Along with significant support from its existing investor base, a large part of the capital raised was made on behalf of non-UK investors; seizing the opportunity to access a high performing segment of the market via a trusted vehicle.
The success of the equity raise comes with the Fund’s assets under management now closing in on £3bn. IPIF’s portfolio spans the UK, creating assets in markets where the occupational demand significantly outweighs supply. Owing to a scarcity of high-quality, well located industrial assets, the supply-demand imbalance supports both rental growth and targeted development.
The Fund has over 20 development projects in the pipeline which will provide new urban logistics, trade developments and self-storage accommodation. The raised capital will largely be deployed to finance these projects, creating modern, fit for purpose stock, with strong performance and ESG credentials. Targeted acquisitions are also being undertaken.
The Fund remains one of the best performing real estate Funds in the UK. Over the last year it has delivered a return to investors in excess of 25%, and over the last 10 years has delivered a return of over 15%pa. The Fund is the top ranked fund in AREF/PFI index over three, five, and 10 years.
Michael Barrie, Director of Fund Management, LGIM Real Assets: "Beyond meeting our capital raising target we saw interest above the £150m objective, highlighting the robustness of the Fund as well as the buoyancy of the sector. We’re delighted to have met the target so swiftly, which is not only significant in diversifying our investor base, but also key in accelerating IPIF’s strategy to ensure the portfolio is fit for the future market. Alongside delivering stable returns for its investors, all new IPIF developments will target zero enabled carbon, aligning with LGIM Real Assets wider ESG and Net Zero commitments."
Jonathan Holland, Senior Fund Manager, LGIM Real Assets: "Given the continued strength of the industrial sector, the Fund is targeting a significant proportion of its new investment on value creation opportunities. This is primarily speculative development in and around main population centres, of which we have a strong pipeline. Given high occupational demand, these development opportunities offer an attractive risk-reward balance, with ESG and sustainability at the forefront of our delivery strategy. We have already seen significant occupier interest in our future projects, with over 50% being currently let or under offer."
Name: Jackie Janssen
Role: PR Manager
Division: Real Assets
Tel: 07470 933 433
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021
Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.28tn in assets (as at 31 December 2020), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36.3bn (as at 31 December 2020) and is one of the largest private markets investment managers in the UK. Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.
Taking a long term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.
(As of June 2021)
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.