Legal & General Capital (LGC) has announced that it committed £5billion towards levelling up the UK’s towns and cities across 2022, driving regional economic growth, tackling the housing crisis, and supporting the climate transition, whilst expanding its footprint into the US for the first time.
Despite global economic uncertainty, LGC significantly increased its alternative asset commitments in 2022, backing the delivery of over 17,000 new homes and 2.7million sq ft of commercial real estate across the UK and US, and investing in multiple innovative clean energy businesses to support the transition to a low carbon economy.
The commitments in 2022 mean that LGC is on track to deliver against its ambitions to generate up to £600million in profit from alternative assets by 2025, with returns of around 10% to 12% per annum, across its key focus areas of housing, SME finance, specialist commercial real estate, digital infrastructure and clean energy.
In 2022, those commitments have included over 17,000 new homes across affordable housing, BTR, modular housing, traditional build-to-sell, and key worker homes. Many of these schemes have been delivered through pioneering new joint venture models.
LGC also continued to invest in major urban regeneration schemes, such as its multi-billion pound commitment with the West Midland’s Combined Authority and new science and tech infrastructure through Bruntwood SciTech’s first Scotland-based scheme, Glasgow Met Tower.
The group has also continued to focus on clean energy transition, making significant investments in companies across power, heat and transport such as net zero enabler Sero Technologies, marine technology business Rovco-Vaarst, battery storage business Brill Power and rooftop solar business Sunroof. LGC also increased investment in UK manufacturer and installer of ground source heat pumps, Kensa Group, amongst others.
LGC also expanded into the US for the first time in 2022, creating a major life science and technology platform across regional markets through its new business Ancora L&G.
Laura Mason, CEO of Legal & General Capital, said: “2022 has been a landmark year for Legal & General Capital as we have made major commitments to deliver transformational schemes in all our alternative asset specialisms across both the UK and, for the first time, the USA.”
“Much of this has come through strategic partnerships with like-minded investors, who are seeking stable, long-term returns, but also looking to drive positive social impact and limit the impacts of climate change. With an increasingly uncertain picture over the next 12 months, it’s essential that financial institutions continue to invest in the real economy, recycling pensions funds and savings into projects that help to create jobs, housing and vital infrastructure. Despite headwinds, our appetite to continue to invest globally, alongside other institutional partners, remains strong for 2023.”
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