Stockholm (NordSIP) – Franklin Templeton announced its diversified Franklin Templeton Social Infrastructure Fund (FTSIF) 2, managed by Franklin Real Asset Advisors (FRAA), has acquired five new assets. The Fund was launched in July 2018 and owns a total of 17 assets worth over of €355 million, in six countries and across four social infrastructure sectors.
The five new assets are based in the UK and Italy and are used for healthcare, education and housing. The new Italian assets include a student housing in Pavia, a healthcare centre in Greater Milan and a University campus and a forward purchase student housing in Bari. The new UK assets includes a student housing facility leased to the University of Nottingham.
The FRAA investment team has a pipeline of over €800 million investments across Europe and expects to transact on additional assets in the coming months. The current investor base of FTSIF includes 19 institutional investors from eight countries.
“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,” Raymond Jacobs, FRAA managing director and portfolio manager of the Fund, commented. “The Covid-19 crisis has made people more aware of the lack of investment opportunities in social infrastructure across European communities. There is just not enough public money available and private capital, such as that provided by our Fund, has a key long-term role to play alongside public capital.”
FRAA’s approach to social infrastructure investing focuses on advancing six of the UN’s 17 Sustainable Development Goals (SDGs): good health and well-being (SDG3); quality education (SDG4) ; clean water and sanitation (SDG6); affordable and clean energy (SDG7), sustainable cities and communities (SDG11); peace and justice and strong institutions (SDG16).
“We are pleased with the high quality of the properties acquired by the Fund and the pace of deployment of our investors’ capital,” Riccardo Abello, director and portfolio manager for FRAA, added. “The portfolio has proven its defensive nature with a 98% rent collection and a WALT (Weighted Average Lease Term) of 15.3 years, providing investors with long term, contracted and predictable income streams. We’re finding many opportunities to directly increase the quantity and quality of social infrastructure and have a solid pipeline of over €800 million investments across Europe.”
At the end of December 19, NordSIP reported on the acquisition of a healthcare property located in Copenhagen by FRAA on behalf of the FTSIF.
Image of Trent Building in University of Nottingham Courtesy of Wikimedia Commons