AlphaReal invests £350m into healthcare facilities for Just Group

Written by Michael Griffiths

14/11/2023

Specialist secure income manager, AlphaReal, has deployed £350m of long income real estate backed investments over nine months on behalf of Just Group, with a significant social infrastructure focus.

The portfolio includes over 100 healthcare facilities that provide specialist care for patients with high acuity caring needs and childcare centres providing support for families, collectively capable of providing care services for approximately 1,800 individuals.

The investments have been originated and structured by AlphaReal to meet Just Group’s requirements, diversified across asset type and sectors throughout the UK. They offer long-dated, inflation-linked cashflows secured against real estate assets and social infrastructure.

AlphaReal specialises in commercial ground rents and has deployed over £2bn in the asset class to date. The firm manages a range of pooled and bespoke mandates for both public and private pension schemes as well as insurers.

Fund manager at AlphaReal, Gordon Smith, said: “We are delighted to be working with Just Group in originating and managing investments that offer secure, long-dated, inflation-linked cashflows.

“AlphaReal’s innovative ground rent structures are particularly appealing to investors who recognise that these high-quality cash flows deliver a favourable risk adjusted return and portfolio diversification benefits.”

Head of investment strategy at Just Group, Nenna Gilmour-Platt, added: “These investments provide attractive long-dated cashflows with inflation protection helping us to meet the financial promises we have made to our customers.

“Our customers have trusted us to look after more than £26bn of their retirement savings and we want the money we invest on their behalf to have a positive impact on society and the environment. Investing in healthcare facilities and social infrastructure allows us to fulfil our purpose to help people achieve a better later life.”

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