Franklin Templeton Social Infrastructure Invests in Copenhagen

    Stockholm (NordSIP) – Franklin Real Asset Advisors announced the acquisition of a healthcare property located in Copenhagen on behalf of the Franklin Templeton Social Infrastructure Fund (FTSIF). FTSIF is a strategy focused on the real estate market that targets specific opportunities to maintain and strengthen social infrastructures available to local communities.

    The property, located in the Søborg area of Copenhagen, Denmark, is comprised of 9,954 sqm and is fully let to Aleris-Hamlet, a healthcare provider operating a privately-run hospital, according to Franklin Templeton. Keystone Investment Management A/S will provide asset management services to the owner. Nordea provided debt financing for this acquisition.

    This announcement is consistent with Franklin Templeton’s effort to respond to the gap in European social infrastructure. According to the European Investment Bank (EIB), the social infrastructure investment funding gap in the EU is around €150 billion per year. The most significant shortfall is in the healthcare sector (49%), followed by affordable housing (40%) and education (11%).

    The FTSIF was launched at the end of 2018 and is managed by Franklin Real Asset Advisors (FRAA). Its first three assets included a justice courthouse in Madrid, a medical clinic in London, and an elderly care facility in a suburb of Milan

    Earlier this year, NordSIP caught up with Raymond Jacobs, Managing Director at Franklin Real Asset Advisors (FRAA) to discuss the asset manager’s approach to social infrastructure. At the time Jacobs explained that Franklin Templeton focuses on purchasing hospitals, nursing homes, schools, affordable housing, fire or police stations, courthouses and other civic and judicial facilities, which it then leases back to the operators. “With our assistance, they are able to focus on their mission without the burden of having to own and maintain the property. Meanwhile, we are supporting the long-term social use of the buildings and are able to take a fresh look at the property and find new sustainability solutions that might have otherwise gone unnoticed.”

    Image courtesy of Aleris-Hamlet

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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