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."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also 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. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
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 £1.29 trillion1 ($1.57tn) in
assets, 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 billion2 ($43.8bn) 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
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.
1LGIM internal data as at 30 June 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
2Source: LGIM Real Assets. AUM data as at 30 June 2022.
*at 13 Jan 2023
For professional clients only. Past performance is not a guide to the future. 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. Views expressed are of LGIM as at 12 January 2023. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.