Franklin Real Asset Advisors has invested an undisclosed sum in UK assets on behalf of its social infrastructure fund in a sale and leaseback deal.

The manager said it has bought two independent nursery and day schools located in London and Greater Manchester on behalf of the Franklin Templeton Social Infrastructure Fund (FTSIF) fund.

The schools are comprised of approximately 7,000sqm combined and will be let on two long indexed leases to Chatsworth Schools.

Raymond Jacobs, managing director at Franklin Real Asset Advisors, said both assets have remained operational throughout the pandemic and largely unaffected from Covid-19, demonstrating their defensive nature, and “we expect them to continue to provide a long term, stable and inflation-linked cashflow”.

Louise Evans, the head of asset management at Franklin Real Asset Advisors, said: “Given the undersupply of schools of this nature, these assets provide a valuable service to their local communities by offering a quality education for over 330 students from a wide catchment area.

“This sale and leaseback transaction is a good illustration of how the fund seeks to free up capital for a growing operator, and we will support them financially with their refurbishment and expansion plans for the schools.”

The open-ended unlisted FTSIF fund invests in physical real estate assets that accommodate and facilitate social services, helping to build strong communities.

The fund made its first investments in January 2019 with the acquisition of a justice courthouse in Madrid, a medical clinic in London, and an elderly care facility in a suburb of Milan and has since acquired further assets.

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