PGGM and Lend Lease invest in PPP/PFI Infrastructure Fund

Today Lend Lease announced it had launched the Lend Lease UK Infrastructure Fund with Dutch asset manager PGGM as the principal investor committing over £220 million in capital to the Fund to invest in social infrastructure assets.

The Fund, a Limited Partnership with an anticipated life of 28 years, will invest in concessions for established healthcare, education and accommodation projects in the UK, which are currently owned by Lend Lease and commit capital to fund the acquisition of future projects delivered by Lend Lease.

Lend Lease will realise approximately £75 million from the sale of the initial assets into the Fund, with a further deferred consideration of approximately £30 million due on transfer of assets still in construction and commissioning.  The remaining commitments to the Fund are expected to be invested over the next five years in additional Lend Lease PPP/PFI projects, most of which have already been identified.  The Fund’s seed portfolio of assets has been created by the Lend Lease Group over the last decade.

PGGM has a majority co-investment in the Fund to provide long-term stable cash flows which are linked to inflation.

Lend Lease has a minority co–investment in the Fund which it will manage while continuing to provide asset and facility management services for these assets.

Henk Huizing, Head of Infrastructure at PGGM commented:
“This investment in social infrastructure assets - including schools and hospitals - is aligned with the ESG criteria in the investment policy of our institutional clients.  Furthermore the inflation component meets our clients’ obligations. This investment is a good example of our recent strategic shift for infrastructure investments to focus on direct infrastructure investments alongside strategic or financial partners.  We are delighted to invest in a sizeable portfolio of core infrastructure assets alongside a strategic partner such as Lend Lease.”

Dan Labbad, Chief Executive Officer – EMEA, Lend Lease added:
“The fund will gain exposure to Lend Lease’s portfolio of core social infrastructure assets.  It will also benefit from the fully integrated Lend Lease model including our established fund management, asset management and facilities management capabilities and will look to grow the investment with similar assets from our future pipeline.”

For more information contact:
Jackie Whitaker, Lend Lease           David Uitdenbogaard, PGGM
020 3430 9233                               + 31 30 277 97 35
jackie.whitaker@lendlease.co.uk     david.uitdenbogaard@pggm.nl
www.lendlease.co.uk                       www.pggm.nl

About PGGM:
PGGM is the administrative organisation for collective pension schemes, principally in the care and welfare sector. It is also an income provider for people in the care and welfare sector.  PGGM currently manages over EUR 100 billion of pension assets of over 2.3 million participants.

About Lend Lease:
Founded in Australia in the 1950s and listed on the Australian Stock Exchange, Lend Lease is a leading real estate specialist, which creates, enhances and manages real estate assets around the world.  The Group's activities are primarily focused in the regions of Asia Pacific, Europe and the US, and cover 40 countries on six continents.

In the UK its business is focused primarily on the delivery of large scale integrated developments designed to regenerate town centre and major urban sites.  Lend Lease provides cohesive in-house solutions for mixed-use developments, from planning and consultation, to development, funding, construction and asset management.
The Group also provides international project and construction management services through Bovis Lend Lease.