In its full year results (to 31 Dec 2017), Legal & General Capital (LGC) announces that its Direct Investments portfolio increased by 28% to £1.45bn (2016: £1.137bn) and delivered an operating profit of £124m (2016: £121m). As part of this, in the housing sector LGC increased its assets under management to £588m (2016: £392m) as it continues to develop operating businesses to deliver its multi-tenure residential offering.
7 Mar 2018
In 2017 LGC generated £369m of gross proceeds from transactions with a gross value of £1.2bn, through a combination of portfolio assets disposals and sales of funds. With all full disposals achieved at or above our target IRRs, demonstrating our ability to generate liquidity and profits for our shareholders, we have continued to recycle investment into new strategic UK real asset opportunities, with £668m committed or invested in investments across all the target sectors.
2017 was a record year for housing delivery, pipeline expansion, investment and returns. Legal & General’s residential activities during the period and start of 2018 have included:
Kerrigan Procter, CEO of Legal & General Capital, commented: “Looking at the societal challenges we face – specifically around the provision of affordable, quality housing that meets the needs of all demographics – it is time for business to embrace inclusive capitalism. As it stands we are going to be judged very poorly by future generations given we know the issues, we have the means to address these and we have chosen to do nothing.
“It is amazing that housing is not an institutional asset class in the UK. Investment-led growth drives productivity and increases real wages. Legal & General is using our long-term patient capital to reverse this market failure and deliver housing across all tenures, creating vibrant and healthy communities where people will want to live over the long term. To do this, we are challenging public perceptions of new homes by delivering a product that surpasses buildings of the past in terms of quality, efficiency and comfort, while ensuring the homes are carefully integrated into the community, providing much enhanced public realm, facilities and infrastructure.”
Kerrigan Procter, CEO of Legal & General Capital: Legal & General is using our long-term patient capital to reverse this market failure and deliver housing across all tenures, creating vibrant and healthy communities where people will want to live over the long term.
Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders. LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.
Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.
Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.
*at 31 Jun 2021