Franklin Templeton Acquires Five Further New Assets for Its Social Infrastructure Fund

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Jennie Casselborg

+46 (0)708 950 135

Franklin Templeton Acquires Five Further New Assets for Its Social Infrastructure Fund

Since its launch in July 2018, Franklin Templeton Social Infrastructure Fund has acquired a total of 17 assets in Europe for a total value in excess of €355m
Significant acquisition pipeline of €800m; expect to announce further assets over the coming months

Stockholm, 2 November 2020 – Franklin Templeton¹ today announced the acquisition of five new assets for its diversified Franklin Templeton Social Infrastructure Fund (FTSIF or the Fund)², its first real estate impact fund offered to investors in Europe. Managed by Franklin Real Asset Advisors (FRAA), the Fund has acquired a total of 17 assets for a total value in excess of €355 million since its launch in July 2018.

In addition to the previously announced social infrastructure assets, FTSIF has acquired five new assets in the healthcare, education and housing sectors in the UK and Italy. 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. In the UK, the Fund purchased a student housing facility leased to the University of Nottingham. These additional acquisitions are resulting in a long-term leased and well diversified portfolio in six countries and across four social infrastructure sectors across all 17 assets.

The FRAA investment team has a strong pipeline of over €800 million investments across Europe and expects to transact on additional assets in the coming months. Interest in FTSIF is wide ranging, with a current investor base of 19 institutional investors from eight countries.

Raymond Jacobs, FRAA managing director and portfolio manager of the Fund, comments: “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. 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 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.

Riccardo Abello, director and portfolio manager for FRAA, says: “We are pleased with the high quality of the properties acquired by the Fund and the pace of deployment of our investors’ capital. 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.”

Considered one of the premier managers in global private real estate investing, Franklin Real Asset Advisors, the dedicated real assets investment platform of Franklin Templeton, has managed global and regional private estate portfolios for investors since 1984, with its experience in social infrastructure gained over multiple market cycles dating back to 2005. Backed by the strength and stability of Franklin Templeton, FRAA offers extensive resources supporting private real estate investing and has deployed over $7.3 billion³ of committed equity in more than 170 private real asset transactions since 1997.

The investment team is comprised of dedicated investment professionals with extensive real estate industry experience, led by a senior management team that has worked collaboratively over the last 17 years and that combines a diverse skill set and deep experience in private real estate investing. The investment team has extensive sourcing capabilities that provide investment opportunities that are not always apparent or available to others, which is a result of its long-term experience and deep industry relationships and networks.

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

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For more information please visit: www.franklintempletonnordic.com.

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Contacts:

Jennie Casselborg
Marketing & Communications Manager
Franklin Templeton
Nybrokajen 5
SE-112 33 Stockholm
Tel: 46 (0)708 950 135
Email: [email protected]

Notes to Editors:

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.4 trillion in assets under management as of September 30, 2020. For more information, please visit www.franklintempletonnordic.com. 30, 2020.

Franklin Templeton’s Alternatives capabilities comprise a broad range of strategies with $124 billion in assets under managements as of September 30, 2020. This includes alternative credit strategies that span private credit, special situations/distressed, structured credit and commercial real estate debt. In addition, the firm offers private equity, hedge strategies, real assets and venture capital strategies.
2. The Franklin Templeton Social Infrastructure Fund, S.C.A. SICAV-SIF (specialised investment fund) is an open-end SICAV-SIF that is unlisted and registered under the AIFMD in the following countries Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and United Kingdom. Subscriptions to shares of the Fund can only be made on the basis of the current confidential private placement memorandum (the “PPM”) of the Fund as well as other regulatory/legally required Fund documents, as relevant. Shares may only be held by “well-informed investors” within the meaning of Luxembourg Law of 23 July 2016 relating to Reserved Alternative Investment Funds, as may be amended from time to time. No shares of the Fund may be directly or indirectly offered or sold to nationals or residents of the United States of America.
Source: Franklin Templeton as of September 30, 2020.

The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. An investment in the Fund entails risks which are described in the Fund’s PPM. An investment in the Fund will involve risks due to, among other things, the nature of the Fund’s investments. Investments in derivative instruments entail specific risks more fully described in the Fund’s PPM.

All investments involve risks, including possible loss of principal. The risks associated with a private equity real estate strategy include, but are not limited to, various risks inherent in the ownership of real estate property, such as fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by general and local economic conditions, the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, environmental laws, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a strategy that invests in a wider variety of countries, regions, industries, sectors or investments.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

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