In its full year results to 31 Dec 2017, Legal & General Capital (LGC) announces that its direct investments portfolio increased by 28% to £1.45 billion and delivered an operating profit of £124 million.
As part of this, in the housing sector LGC increased its assets under management to £588 million as it continues to develop operating businesses to deliver its multi-tenure residential offering.
In 2017 LGC generated £369 million of gross proceeds from transactions with a gross value of £1.2 billion, 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 £668 million committed or invested in investments across all the target sectors.
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.”