UK firm Legal & General has partnered with Boston-based private equity firm Taurus Investment Holdings, as it looks to strengthen its ties to US real estate.
L&G has committed $200 million in seed capital to US ‘multifamily real estate’ – meaning multiple units within a building, or several buildings within one complex.
Taurus acquires, develops, finances, leases, and sells multifamily and industrial real estate assets across the US, as well as in Germany and the UK, totalling more than $11 billion in value to date.
António Simões, group chief executive officer, Legal & General, said: “Asset Management is the cornerstone of our growth strategy, and scale in private markets globally is key to those ambitions.
“We believe, our partnership with Taurus will accelerate our progress, deepening our capabilities in US real estate so that our shareholders and clients can seek to benefit from access to a fast growing, attractive market.
“Our strategic investment and additional commitment of up to $200m in seed capital reflects our belief in the strength of our combined offer, and the potential growth prospects ahead.”
Multifamily and industrial have grown to account for 63% of institutional real estate portfolios, up from 34% in 2000, and are the two strongest performing core sectors in the US over the last 20-years.
Both areas are expected to see strong rental growth in future.
L&G launched a US asset management business in 2006, and has since secured $231.9bn of assets under management across public and private markets.
Peter A. Merrigan, chief executive officer, Taurus, said: “Taurus is pleased to enter this partnership with Legal & General which enhances and expands their access to US real estate markets, while providing Taurus with an injection of capital from an impressive, long-standing financial services group and global investor.
“Remaining focused on our investment strategies in today’s evolving real estate market is key and this partnership presents an exciting opportunity to invest in high-quality real estate assets at scale. Taking a responsible approach, we aim to deliver long-term value for our stakeholders.”
