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Real AssetsInvesting for a positive change

2018 Legal & General Investment Management Real Assets - Corporate Profile

DP World, London Gateway Port

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ContentsInvesting for positive change 4

Adding value through partnerships 6

Building homes for Britain 8

Focused on long-term needs 10

Real estate 12

Infrastructure 14

Corporate debt 16

Breaking new ground in the US 18“ Our forward-looking business combines depth of knowledge and innovative ideas to create outstanding investment solutions that serve the long-term needs of clients, businesses and communities across the globe.”

Bill Hughes, Head of LGIM Real Assets

Legal & General Investment Management, Real Assets 2018 Corporate Profile

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Investing for positive changeLGIM Real Assets is part of Legal & General Investment

Management (LGIM) – the investment arm of Legal

& General Group, one of the biggest insurance and

financial management companies in the world.

We are trusted to invest £27.0 billion*, making us one

of the UK’s largest real asset managers in real estate,

infrastructure and corporate debt.

50 years of experience has led to unrivalled expertise,

enduring relationships and one of the most extensive

networks in the industry. It also means we can identify

and access some of the best market deals.

In other words, we take a long-term view and use our

size and influence to bring about positive change and

create sustainable investor value.

And not only do we seek to help clients meet their

investment needs but we do so while having a positive

impact on society and the environment.

It’s a dynamic combination that’s led to consistent

growth. Now, with the increasing crossover in the

real assets space, we’ve broadened our investment

capabilities accordingly.

It doesn’t stop there. We’re expanding internationally,

applying our skills and knowledge across Europe, the

US and Australia.

* As at 31 December 2017

The Walney Extension. We provided over £300m of long-term acquisition debt to support the development of the world’s largest offshore wind farm.

The Beacon, Eastbourne. £220 million retail and leisure town centre regeneration.

Newcastle Helix. £350 million city centre development, boosting local jobs and driving economic growth.

£27.0 billion*

invested in real estate, infrastructure and corporate debt.

50 Yearsindustry experience.

Globalexpansion across Europe, the US and Australia.


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2018 Corporate Profile

The Lexicon, Bracknell. £240 million joint venture redevelopment of Bracknell town centre, one of the largest urban regeneration projects in the UK.

Investing for now and the future

As part of LGIM, one of the world’s leading investment

companies, we use our scale and influence to invest

responsibly, considering the social, economic and

environmental impact of our decisions. We understand

that occupiers need exceptional buildings to work and

live in; that local communities want environments that

contribute positively to everyday life; and that

companies require competitive financing to be able to

generate jobs.

Expertise focused on getting the best outcomes for our partners

Investing in real assets can be complex, and requires a

far broader and deeper pool of resources than for more

liquid investments. Our dedicated real assets

investment professionals have the expertise to add

value at all stages of a transaction – from origination

and deal structuring to investment and asset

management – and the experience to deliver across the

entire market cycle.

Success in the real assets world requires more than managing the assets. It needs strong

relationships, founded in trust and a shared ethos. Only then can we understand the complex

needs of all our partners. This requires hard work and flexibility, and is rewarded through

investments that deliver the outcomes our partners’ need, be they occupiers, consumers,

companies or investors.

Adding value through partnerships

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The Slate Yard, Salford. Our first build-to-rent scheme comprises 225 apartments designed to meet the bespoke demands of the rental market.


Building homes for BritainBuild-to-Rent schemes play an essential role in helping

to solve the UK’s chronic housing shortage. Our first

such scheme, The Slate Yard in Salford, North-West

England provided 225 apartments, designed

specifically for the rental market. The scheme set a

new standard for Build-to-Rent accommodation,

making renting a choice – not the only option.

The scheme was designed with residents in mind.

We spoke to renters and asked what they wanted

and valued. The result was a variety of unit sizes and

layouts, high quality interiors, attractive amenities,

and onsite management and maintenance.

We knew that location was also important, so the

site was close to the heart of Manchester with

good transport links for easy commuting.

Given that there is no single demographic for

Build-to-Rent, it follows that one size does not fit

all. We worked to create living environments that

could adapt accordingly, from flexible contracts

to policies that encourage tenants to make their

home their own. Solar panels were also installed

to reduce the long-term running costs of

communal spaces.

Case Study

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One Central Square, Cardiff. Joint venture partnership to fund the £400m development of over 1.2m sq ft of mixed use accommodation creating space for 10,000 jobs.


Focused on the long-term needs of clients, businesses and communities

Our investment capabilities encompass real estate, infrastructure and corporate debt. Sharing our knowledge across these areas enables us to develop deeper insights of markets and trends, and helps us to align the needs of our partners.

We offer diverse equity and debt solutions that cater to the needs of every type of investor, with varying risk profiles and sector focus. All are united by one underlying principle: to meet investors’ demands for long-term assets and enhanced income, while having a positive impact on society and the environment.

We offer our clients a range of pooled funds, both open- and closed-ended, that provide access to the broad market with differing investment objectives. We also offer funds with a specialist sector focus, ranging from leisure parks to industrial estates and urban regeneration.

We’ve over 30 years’ experience of running segregated mandates. Drawing on our deep insights of the real assets sector, we create bespoke investment solutions that meet our clients’ individual needs.

We run several joint ventures with like-minded partners who share our long-term investment ambitions. These partnerships tend to be focused on specific real estate or infrastructure deals where greater control and alignment of interest is required due to the complexity of the transaction.

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We manage over

£22.1 billion*

in Real Estate Equity and Debt.

245 Hammersmith Road, London. £275 million office joint venture, to develop a new, flexible and collaborative working environment.



Real estateWe’re one of the UK’s most active real estate managers.

Clients have trusted us to invest their capital in real

estate for almost 50 years. During that time, we’ve built

a strong network of industry relationships. This gives

us excellent access to deals, be it debt or equity.

Our experience enables us to add value across the

entire market cycle, based on expert teams who are

able to get the most out of each property. Our scale

also sets us apart since it provides the depth of resource

to specialise in individual sectors. This detailed focus

on occupier and investment dynamics generates

valuable insights that inform asset management plans

and add value to our investment process.

We understand that clients’ needs can change over time.

Our proven track record of innovation includes solutions

designed to meet those evolving requirements.

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InfrastructureSince our debut infrastructure deal in 2012, we’ve

become active investors in all key social and economic

infrastructure sectors, managing £3.0 billion* of assets

in the UK, across Europe, the US and Australia. This

evolution in our investment capabilities, which

continues to broaden, recognises clients’ growing

demands for alternative sources of high quality income

and long-term cash flows.

Infrastructure transactions are often complex to

arrange and require a long-term commitment,

potentially for several decades. We understand that

borrowers need a reliable partner, and seek to form

strong relationships, founded on trust, shared ethos

with a desire to have a positive social and economic

impact on communities.

We seek to have an early involvement in potential deals

to optimise the structure of the transaction, negotiating

covenants to protect the security of income.

Our approach is underpinned by robust in-house credit

analysis to ensure we understand and manage

associated risks.

We manage over

£3.0 billion*

of Infrastructure Debt.

High Speed Rail 1. In 2017 we provided £120 million of fixed rate debt to support the successful 2017 acquisition of the UK’s sole high speed rail link.



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Corporate debtWe lend to investment grade corporate and public

sector entities, working with borrowers to complement

or extend debt finance from banks. Since entering the

market in 2016, we have completed £900 million* of

transactions in the UK, across Europe, the US and

Australia.

As long-term lenders to a business, we are stakeholders

in its future success. Therefore, we seek to develop and

build relationships with each of the businesses that we

lend to. Knowing these businesses helps us to

understand any stresses in their business models and

also ensures we are well placed to provide further

support if needed.

In contrast to public markets, many borrowers in the

private markets are not rated. Leveraging our direct

access to management teams, our in-house credit

analysts assign independent ratings that mirror those

issued by external credit rating agencies. This helps us

ensure each deal is structured appropriately and the

level of compensation adequately reflects the risk taken.

We manage over

£1.9 billion*

of Corporate Debt.

Goshawk. We provided £35.5m of long term finance to facilitate the continued growth of this specialist aircraft leasing platform.



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Breaking new ground in the USThe difference between alternative real estate,

infrastructure and corporate credit is becoming

less distinct. In part, this reflects the growth of

private / public sector partnerships, as well as the

move by private entities into areas traditionally

provided by the public sector.

The integration of infrastructure and corporate

credit into our Real Assets offering means we can

take a holistic view of any opportunity and can look

at transactions from different perspectives.

When the University of California, Merced, was

looking to expand its campus, we broke new ground

by becoming part of the first educational private/

public sector partnership to take place in the US.

Our strong track record in infrastructure, existing

presence in the US and expertise across real assets

meant we had longevity and the vision that the

University of California needed in a partner.

The financing will help to nearly double the size

of the existing campus, adding new classrooms,

laboratories, student accommodation and amenities

to sustainably enhance student life and further

academic distinction. In addition, it will help one of

the poorest areas in California, creating new jobs

and having a positive impact on the local community.University of California. The first educational sector public-private partnership to take place in the US, our long term financing will help to nearly double the size of the University Campus.


Case Study

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CONTACT US

Please contact LGIM Real Assets Solutions Team for more information.

Legal & General Investment Management

One Coleman Street

London EC2R 5AA

+44 (0) 20 3124 2700 lgim.com/realassets [email protected]

IMPORTANT INFORMATION

The information contained in this document (the ‘Information’) is issued by Legal & General Investment Management Limited, LGIM Real Assets (Operator) Limited, and/or their affiliates (‘Legal & General’, ‘we’ or ‘us’). Such Information is the property and/or confidential information of Legal & General and may not be disclosed by you to any other person without the prior written consent of Legal & General.

The information has been produced for information and discussion purposes only and it is not intended to constitute advice (investment, legal, tax advice or otherwise). The information should not form the basis of any investment decisions by you and we are not acting as a fiduciary to you. You should consult with your own professional advisors before taking any action based on the information in this presentation as Legal & General does not (to the fullest extent permitted by law) accept any responsibility for any act or omission taken in reliance of the information contained in this presentation. The information sets out the opinions of Legal & General and is not a guarantee of future events or the profitability of any investment product or service.

Please do not circulate this information to any third party without our prior written consent.

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.

LGIM Real Assets (Operator) Limited. Registered in England and Wales No. 05522016. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 447041.

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