Legal & General keen on East London infrastructure

In a sign of growing institutional investor interest in infrastructure, Legal & General has announced support for £1 billion in a range of infrastructure assets in East London.

The projects involved include a £246 million headquarters for Transport for London in Stratford, over 400 build-to-rent flats in Walthamstow in partnership with Dutch pension fund PGGM, £63 million in student accommodation in Stratford, DP World’s London Gateway port, with the Pension Protection Fund, for £400 million, and Amazon’s new fulfilment centre at Tilbury.

Legal & General Retirement managing director, Kerrigan Procter, said: “We have invested over £1 billion of long-term capital in new assets and are looking at many more opportunities here and across the UK. Our direct investments are economically and socially useful, with every £1 invested in physical infrastructure generating around £3 of local economic activity. In a world where over $10 trillion of government bonds earn negative returns, our direct investments create local economic growth, income for pensioners and returns for shareholders.”

Legal & General said it has already invested £8 billion in UK infrastructure, housing and urban regeneration and SME finance, and is on track to invest £15 billion.