Franklin Templeton acquires three further new assets for its Social Infrastructure Fund

• Since its launch in July 2018, Franklin Templeton Social Infrastructure Fund has acquired a total of 12 assets in Europe for a total value in excess of €270m
• Significant acquisition pipeline of €650m; expect to announce further assets in 2020

Luxembourg and London, 10 February 2020 – Franklin Templeton¹ today announced the acquisition of three new assets for its diversified Franklin Templeton Social Infrastructure Fund (FTSIF or the Fund)², 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 for a total value in excess of €270 million since its launch in July 2018.

In addition to the previously announced healthcare, education and justice assets in London, Brighton, Madrid, Milan, Venice, Copenhagen, Aachen and Stockholm, FTSIF has acquired 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, resulting in a long-term leased diversified portfolio of over 126,000 square meters of rentable area across all 12 assets.

Interest in FTSIF is wide ranging, with a current investor base of 17 European and Canadian institutional investors. The FRAA investment team has a strong pipeline of over €650 million investments across Europe and expects to transact on additional assets in the course of 2020.

Raymond Jacobs, FRAA managing director and portfolio manager of the Fund, comments: “We are pleased with the progress of the Franklin Templeton Social Infrastructure Fund since its launch in July 2018. 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’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 delighted with the high quality of the properties acquired by the Fund and the speed at which we are deploying our investors’ capital. We now have 12 assets in the Fund’s diversified portfolio with a total value exceeding €270 million and 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.”

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 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.

Notes to Editors:

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions.
   
   Franklin Templeton’s Alternatives capabilities comprise a broad range of strategies with $41 billion in asset under management. This includes alternative credit strategies from Benefit Street Partners spanning private credit, special situations/distressed, structured credit and commercial real estate debt. The firm also offers private equity, hedge strategies, real assets and venture capital strategies from across its Darby Overseas Investments, Franklin Real Asset Advisors, Franklin Venture Partners, K2 Advisors, Templeton Global Macro and Templeton Private Equity Partners investment teams.
   
   The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $698 billion in assets under management as of December 31, 2019. For more information, please visit www.franklintempletonnordic.com
    
2. The Franklin Templeton Social Infrastructure Fund, S.C.A. SICAV-RAIF is an open-end SICAV-RAIF that is unlisted and registered 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.
    
3. Source: Franklin Templeton as of December 31, 2019.

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.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

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