Franklin Templeton Acquires Six Further New Assets for Its Social Infrastructure Impact Fund

From	Franklin Templeton
Contact	Saira Khan
Telephone	(0)207 073 8644

Franklin Templeton Acquires Six Further New Assets for its Social Infrastructure Impact Fund

Since its launch, Franklin Templeton Social Infrastructure Fund has acquired a total of nine assets in Europe for a total value in excess of €200m

Luxembourg and London, 23 July 2019 – Franklin Templeton¹ today announces the acquisition of six new assets for its diversified Franklin Templeton Social Infrastructure Fund (FTSIF or the Fund)², its first real estate impact fund offered to investors in Europe. Managed by Franklin Real Asset Advisors (FRAA), the Fund has acquired a total of nine assets for a total value in excess of €200 million since its launch a year ago.

In addition to the previously announced healthcare and justice assets in London, Madrid and Milan, FTSIF acquired six new assets in the education and healthcare sectors in Denmark, Germany, Italy, Sweden and UK, resulting in a long-term leased diversified portfolio of 101,000 square meters of rentable area. The new assets include a university complex in Aachen, a school in Stockholm, a hospital in Venice, a healthcare centre in Brighton, a portfolio of two nursing home facilities in London and a hospital in Copenhagen.

Interest for FTSIF is wide ranging, with a current investor base of 12 European and Canadian institutional investors. The FRAA investment team has a robust pipeline of over €500 million investments across Europe and expects to transact on several additional assets in the second half of 2019.

Raymond Jacobs, managing director and portfolio manager of the Fund, comments: “At Franklin Templeton, we define social infrastructure as the physical assets that facilitate social services, helping build strong communities. Investment in social infrastructure offers an opportunity to pursue a dual objective, namely, to generate market financial returns as well as providing a positive social and environmental impact in the wider community. While access to social services across Europe is essential for economic growth and prosperity, not enough is being done to build and adequately maintain the requisite facilities. Through investing in social infrastructure, investors can add much-needed private capital to boost and protect the social services being provided to communities.”

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; clean water and sanitation; affordable and clean energy, sustainable cities and communities; peace and justice and strong institutions. Franklin

Riccardo Abello, director and portfolio manager for FRAA said: “We are delighted with the progress Franklin Templeton Social Infrastructure Fund has made since its launch in July 2018. We have acquired nine assets for the Fund’s diversified portfolio for a total value exceeding €200 million. We have a solid pipeline of over €500 million investments across Europe and expect to announce new asset purchases later this year.”

He continues: “Our focus continues to be on a dual-return approach that seeks “win-win” investment opportunities where a measurable social and environmental impact return is targeted in addition to an atleast market rate financial return.”

Considered one of the premier managers in global private real estate investing, Franklin Real Asset Advisors, the dedicated real assets investment 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 €6.7 billion3 of equity in more than 150 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 that 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 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 invests 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.

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.

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FRANKLIN TEMPLETON ACQUIRES SIX FURTHER NEW ASSETS FOR ITS SOCIAL INFRASTRUCTURE IMPACT FUND

Contacts:

Alina Ulkina	Dorine Johnson
Corporate Communications Manager	Head of Corporate Communications Europe
Franklin Templeton	Franklin Templeton
Cannon Place, 78 Cannon Street	Cannon Place, 78 Cannon Street
London EC4N 6HL	London EC4N 6HL
Tel: 0207 073 8541	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. Franklin Templeton’s goal is to deliver better outcomes by providing 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, alternatives and custom multi-asset solutions.

Franklin Templeton’s alternatives capabilities include alternative credit, hedge strategies, real assets, private equity and venture capital strategies from Benefit Street Partners, Darby Overseas Investments, Franklin Real Asset Advisors, Franklin Venture Partners, K2 Advisors, Templeton Global Macro, Templeton Private Equity Partners and private equity fund-of-funds by Franklin Templeton Private Equity (joint venture with Asia Alternatives).

The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $715 billion in assets under management as of June 30, 2019. For more information, please visit www.franklintempleton.co.uk

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 confidential 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.

Source: Franklin Templeton as of June 30, 2019.

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). 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 and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton 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 for its own purposes.

Issued by Franklin Templeton International Services S.à r.l.