Legal & General (L&G) is expanding its US strategy by making an investment of up to $200m (€184.7m) in seed capital to enter the multifamily real estate market through Taurus Investment Holdings.
The UK insurer said it has made an investment in global real estate private equity firm Taurus and has also made the capital commitment to multifamily.
Taurus has experience in acquiring, developing, financing, leasing and selling multifamily and industrial real estate assets across the US and select global markets, including Germany and the UK.
L&G – which made its US real estate debut in 2022 via a venture with Ancora – said the partnership with Taurus adds real estate equity capability in multifamily and industrial, and “delivers on L&G’s strategic vision to build out a full-scale US real estate investment management capability”.
Early last year, L&G hired Alexia Gottschalch and Tim Watson from Aegon Asset Management to help extend its direct real estate equity investment business into the US.
António Simões, group CEO at L&G, said: “We believe, our partnership with Taurus will accelerate our progress, deepening our capabilities in US real estate so that our shareholders and clients can seek to benefit from access to a fast growing, attractive market.
”Our strategic investment and additional commitment of up to $200m in seed capital reflects our belief in the strength of our combined offer, and the potential growth prospects ahead.”
Gottschalch, the head of US real estate equity, private markets at L&G’s asset management arm, said: “As one of the largest real estate markets in the world, the US represents a significant growth opportunity for Legal & General.
“Our partnership with Taurus accelerates our ability to capitalise on this market and significantly scale our expertise and execution capabilities.”
Peter A Merrigan, CEO of Taurus, said: “Taurus is pleased to enter this partnership with Legal & General which enhances and expands their access to US real estate markets, while providing Taurus with an injection of capital from an impressive, long-standing financial services group and global investor.
“Remaining focused on our investment strategies in today’s evolving real estate market is key and this partnership presents an exciting opportunity to invest in high-quality real estate assets at scale. Taking a responsible approach, we aim to deliver long-term value for our stakeholders.”
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