| From | Franklin Templeton |
| Contact | Saira Khan |
| Telephone | (0)207 073 8644 |
Franklin Templeton Acquires Three Assets for new Social Infrastructure Impact Fund
- New strategy focused on social infrastructure is first Franklin Templeton real estate-oriented impact investing fund
- €158.4 million raised in open-end structure to invest in community assets across Europe
London, 29 January 2019 – Franklin Templeton today announces the acquisition of three social infrastructure assets, following the launch of the Franklin Templeton Social Infrastructure Fund (FTSIF)1, a new impact investment fund focusing on social infrastructure investments across Europe. By December 2018, the fund acquired its first three assets for its diversified FTSIF portfolio which includes a justice court house in Madrid, a medical clinic in London, and an elderly care facility in a suburb of Milan.
Managed by Franklin Real Asset Advisors (FRAA), the fund raised €158.4 million in its initial closings in 2018. The investor base of eight European and Canadian institutional investors was led by VBV-Vorsorgekasse AG, a leading severance payment fund in Austria. The FRAA investment team has a robust pipeline of over €500 million investments and expects to transact several additional assets in the first quarter of 2019.
“There is a widening gap between what is needed to build and maintain adequate social infrastructure and the resources available to fund these projects,” said Raymond Jacobs, managing director and portfolio manager of the fund. “Public investment alone is not sufficient to fill this gap, and social infrastructure has emerged as an important, institutional-scale opportunity for private investors to align their portfolios with societal benefits and achieve competitive financial performance.”
FTSIF is an AIFMD-compliant, open-end unlisted fund investing in physical real estate assets that accommodate and facilitate social services, helping to build strong communities. The fund will invest in core, income producing assets located in, or around, large communities in the European Economic Area, Switzerland and the United Kingdom. Examples of social infrastructure assets include healthcare and education facilities, social and affordable housing and buildings related to justice, emergency and civic services.
First impact fund
The first impact fund of its kind to be offered by Franklin Templeton in Europe, FTSIF has a dual-return approach that seeks “win-win” investment opportunities where a measurable social and environmental impact return is targeted in addition to an at-least market rate financial return. FRAA’s intentional approach to social infrastructure investing contributes to six of the United Nation’s Sustainable Development Goals: good health and well-being; quality education; decent work and economic growth; sustainable cities and communities; climate action; and life on land.
Assessing community value and environmental performance in social infrastructure is a multifaceted exercise with a set of interrelated considerations. On behalf of its investors, FRAA’s impact director, John Levy has constructed a transparent impact measurement and reporting approach that FRAA believes sets best practices for its stakeholders.
Riccardo Abello, director and portfolio manager, said: “We believe that local real estate markets move independently from one another, so a European investment program has historically created natural diversification. In addition, due to the nature of the essential services provided by social infrastructure assets, returns are expected to be lowly correlated with the broader market. Finally, historically lower entry rents and higher yields than commercial real estate in similar locations provide the potential for an attractive purchase price at acquisition.”
Considered one of the premier managers in global private real estate investing, Franklin Real Asset Advisors, the dedicated real assets platform of Franklin Templeton has managed global and regional private estate portfolios for investors since 1984, with its experience in social infrastructure gained over multiple market cycles dating back to 2005. Backed by the strength and stability of Franklin Templeton, FRAA offers extensive resources supporting private real estate investing and has deployed over EUR 6.5 billion of equity in more than 140 private real asset transactions since 1997.
The investment team is comprised of dedicated investment professionals with extensive real estate industry experience, led by a senior management team who has worked collaboratively over the last 17 years and which combines a diverse skill set and deep experience in private real estate investing. The investment team has extensive sourcing capabilities that provide investment opportunities that are not always apparent or available to others which is a result of its long-term experience and deep industry relationships and networks.
FTSIF has been registered under the AIFMD in the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and United Kingdom. Professional investors in those countries will be able to access the fund with immediate effect.
For more information please visit: www.franklintempleton.co.uk
Contacts:
|
Saira Khan |
Dorine Johnson |
|---|---|
| Corporate Communications Manager | Head of Corporate Communications Europe |
| Franklin Templeton Investments | Franklin Templeton Investments |
| Cannon Place, 78 Cannon Street | Cannon Place, 78 Cannon Street |
| London EC4N 6HL | London EC4N 6HL |
| Tel: 0207 073 8644 | Tel: 0207 073 8538 |
| Email: [email protected] | Email: [email protected] |
Notes to Editors:
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom solutions. The company’s alternatives capabilities include private equity, hedge, commodities, real estate, infrastructure and venture capital strategies from Darby Overseas Investments, Franklin Real Asset Advisors, Franklin Venture Partners, K2 Advisors, Pelagos Capital Management, Templeton Global Macro and Templeton Private Equity Partners.
The company’s more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and over $649 billion in assets under management as of December 31, 2018. For more information, please visit www.franklintempleton.co.uk
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The Franklin Templeton Social Infrastructure Fund, S.C.A. SICAV-RAIF is an open-end SICAV-RAIF that is unlisted and registered under the AIFMD in the following countries Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and United Kingdom. Subscriptions to shares of the Fund can only be made on the basis of the current private placement memorandum (the “PPM”) of the Fund as well as other regulatory/legally required Fund documents, as relevant. Shares may only be held by “well-informed investors” within the meaning of Luxembourg Law of 23 July 2016 relating to Reserved Alternative Investment Funds, as may be amended from time to time. No shares of the Fund may be directly or indirectly offered or sold to nationals or residents of the United States of America.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. An investment in the Fund entails risks which are described in the Fund’s PPM. An investment in the Fund will involve risks due to, among other things, the nature of the Fund’s investments. Investments in derivative instruments entail specific risks more fully described in the Fund’s PPM.
- All investments involve risks, including possible loss of principal. The risks associated with a private equity real estate strategy include, but are not limited to, various risks inherent in the ownership of real estate property, such as fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by general and local economic conditions, the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, environmental laws, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Investments may consist of social infrastructure projects that are subject to numerous federal, state and local statutory and regulatory standards and required to maintain numerous permits and approvals for their operation. There can be no assurance that the Fund will be able to (i) obtain all required regulatory approvals and permits for a project; (ii) obtain any necessary modifications to existing regulatory approvals and permits; or (iii) review and otherwise maintain required regulatory approvals and permits. Any delay in obtaining or any failure to obtain and maintain in full force and effect any regulatory approvals and permits, or amendments thereto, or delay or failure to satisfy any regulatory conditions or other applicable requirements could prevent the operation or disposition of a project and result in additional costs to an investment and the fund. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a strategy that invests in a wider variety of countries, regions, industries, sectors or investments.
This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton Investments and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton Investments makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton Investments shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.
Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes.
Issued by Franklin Templeton International Services S.à r.l.