LGIM Real Assets (Legal & General) announces that it has provided €54 million in long-term financing to Clúid Housing, one of Ireland’s largest approved housing bodies (AHBs). The funding will enable the delivery of c.200 new social homes across Ireland, and marks the first Irish AHB to secure a financing agreement of this scale with an international institutional asset manager
14 Dec 2020
Aligned with its social purpose, Legal & General has over £1.5 billion invested in affordable housing to date in the UK. This transaction represents Legal & General’s first investment in the Irish social housing sector, and brings much needed long-term pension fund capital to the housing sector.
With over 68,000 households on the waiting list for social housing in Ireland, the Irish Government has made a commitment to ensure that everyone can access a home, either on their own or with State support. As part of an ambition to increase the provision of social housing in Ireland, facilitating the evolution of established funding structures for social housing projects, the Department of Housing, Local Government and Heritage (DHLGH), and the Housing Agency have adapted their funding requirements to support innovation in the AHB sector.
With a portfolio of over 8,000 homes across all counties in Ireland, Clúid has an ambitious growth strategy to deliver an additional 3,000 new social homes before the end of 2022. Legal & General’s investment will enable Clúid to deliver more high quality social homes, and provide a socially useful home for pension fund capital. The first homes financed through the agreement are expected to be delivered in Q1 2021.
Centrus acted as Clúid’s advisors and Byrne Wallace, one of Ireland’s largest law firms, provided legal advice.
Darragh O’Brien TD, Minister for Housing, Local Government and Heritage: "Approved Housing Bodies play a vital role in delivering social housing and continue to make progress against our housing delivery targets. Today’s announcement demonstrates the innovative ways in which AHBs like Clúid are diversifying their funding models to achieve even greater value for money whilst refusing to compromise on quality. This is an exciting development for the AHB sector and I look forward to seeing the output from this agreement in the coming months."
Steve Bolton, Head of Corporate Debt, Europe, LGIM Real Assets: "As we continue to expand the LGIM business in Ireland, we are delighted to have made our first investment in the affordable housing sector.
There is an urgent need to innovate in this sector and provide good quality, stable homes for the many thousands of households on the social housing waiting list in Ireland. Covid has further highlighted the central role of the home in people’s lives, demonstrating the need for more good quality, affordable homes. Our investment in Clúid matches our extended liabilities and delivers real economic growth and social value."
Fiona Cormican, Clúid’s New Business Director: "Clúid firmly believes that having your own front door, your own place to call home, opens the door to opportunities like seeking out employment, accessing education and other services that enable people to contribute to and enrich communities. We are committed to delivering good quality social housing.
Clúid values all its funding partnerships. It is so important that our funders understand our commitment to delivering social housing and our long-term strategic objectives. LGIM is an ideal partner for Clúid and brings extensive experience having provided financing to affordable housing providers in the UK for many years now. For us, finding a funding partner with a wider social purpose is incredibly important.
Our business plan is built on a solid understanding of our work and includes clear strategic objectives. We not only want to meet the needs of our existing residents but also the needs of our future customers too. This loan establishes a new template for funding social housing in Ireland. We anticipate that this innovative new financing model will encourage the development of future private financing agreements in the AHB sector. Today’s announcement is a vote of confidence in Clúid, the Irish social housing sector and the Irish economy."
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 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 2022
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.29 trillion1. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1Globally, we manage assets of £1.42 trillion or CHF 1.75 trillion as at 31 December 2021 (source: LGIM internal data as at 31 December 2021). The data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.
*at 11 Jan 2023
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. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.
IMPORTANT LEGAL NOTICE
In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).
LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa ("CONSOB") and is registered with Banca d'Italia (no. 23978.0) with registered office at Piazza della Repubblica 3, 20121 Milan, (Companies' Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority ("BaFin"). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets ("AFM") and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231.Details about the full extent of our relevant authorisations and permissions are available from us upon request. For further information on our products (including the product prospectuses), please visit our website.