Franklin Templeton Sustainable Infrastructure Portfolio Continues to Grow

    Stockholm (NordSIP) – On Monday, February 10, Franklin Templeton announced the acquisition of three new assets for the Franklin Templeton Social Infrastructure Fund (FTSIF), its first real estate fund offered to investors in Europe.

    Managed by Franklin Real Asset Advisors (FRAA), the fund has acquired a total of 12 assets, worth over €270 million, since its launch in July 2018. In September, NordSIP talked to Raymond Jacobs, Managing Director at FRAA, about the healthcare, education and justice assets in London, Brighton, Madrid, Milan, Venice, Copenhagen, Aachen and Stockholm, that FTSIF had acquired.

    Now, the fund has added three new assets in the education, housing and healthcare sectors in the UK and Italy. The new assets include a school in London, a portfolio of 40 affordable housing properties in Cambridge and a hospital in Venice. According to the investment managers, the leased diversified portfolio now covers over 126,000 square meters of rentable area across all assets.

    “We are delighted with the high quality of the properties acquired by the Fund and the speed at which we are deploying our investors’ capital,” added Riccardo Abello, director and portfolio manager for FRAA. “We (…) plan to enter new countries and invest in new sectors. We’re finding many opportunities to directly increase the quantity and quality of social infrastructure and have a solid pipeline of over €650 million investments across Europe. We expect to announce new asset acquisitions during this year.”

    FRAA’s intentional approach to social infrastructure investing contributes to six of the United Nation’s Sustainable Development Goals, namely good health and well-being; quality education; clean water and sanitation; affordable and clean energy, sustainable cities and communities; peace and justice and strong institutions.

    “We are pleased with the progress of the Franklin Templeton Social Infrastructure Fund since its launch in July 2018,” Jacobs said on this occasion. “The fund’s dual return objective of delivering a market core real estate return together with a social and environmental impact has found great interest from a wide variety of investors. We are looking forward to making our first dividend distribution this quarter.”

    FRAA offers extensive resources supporting private real estate investing and has deployed over $7.3 billion of committed equity in more than 170 private real asset transactions since 1997. FTSIF is an open-end unlisted fund investing in physical real estate assets that accommodate and facilitate social services, helping to build strong communities. The fund invests in core, income-producing assets located in, or around, large communities in the European Economic Area, Switzerland and the United Kingdom. Examples of social infrastructure assets include healthcare and education facilities, social and affordable housing and buildings related to justice, emergency and civic services.

    FTSIF has been registered in the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and the United Kingdom. Professional investors in those countries will be able to access the fund with immediate effect.

    Image by jarekgrafik from Pixabay

    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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