UK retirement specialist Just Group invested £350m (€401m) over nine months in UK real estate with a significant focus on social infrastructure through secure income manager AlphaReal.
AlphaReal said the long-income real estate-backed investments made during the period include over 100 healthcare facilities that provide specialist care for patients with high acuity caring needs and childcare centres.
AlphaReal said the investments were originated and structured to meet Just Group’s specific requirements and were diversified across asset type and sectors throughout the UK. offering long-dated, inflation-linked cashflows.
FTSE-listed specialist UK financial services company Just Group is focused on individual retirement income, care and defined benefit de-risking markets.
Nenna Gilmour-Platt, head of investment strategy at Just Group, said: “These investments provide attractive long-dated cashflows with inflation protection helping us to meet the financial promises we have made to our customers.
“Our customers have trusted us to look after more than £26bn of their retirement savings and we want the money we invest on their behalf to have a positive impact on society and the environment. Investing in healthcare facilities and social infrastructure allows us to fulfil our purpose to help people achieve a better later life.”
Gordon Smith, fund manager at AlphaReal, said: “We are delighted to be working with Just Group in originating and managing investments that offer secure, long-dated, inflation-linked cashflows.
“AlphaReal’s innovative ground rent structures are particularly appealing to investors who recognise that these high-quality cash flows deliver a favourable risk-adjusted return and portfolio diversification benefits.”
Boris Mikhailov, head of client solutions at AlphaReal, said: “We see increasing interest from insurers in secure income strategies with the trend expected to continue into 2024 and beyond. This is driven by a significant uptick in the volume of defined benefit de-risking activity, with 2023 expected to be another record-breaking year.
“Insurers, like Just Group, are seeking opportunities that can provide secure cashflows and that’s where strategies like commercial ground rents can be attractive. The introduction of Solvency UK should further increase the appeal of secure income assets to insurers.”
To read the latest IPE Real Assets magazine click here.
