Franklin Templeton reaches €200m of deals for impact property fund

Global investment firm Franklin Templeton has acquired six new assets for its diversified Franklin Templeton Social Infrastructure Fund (FTSIF), its first real estate impact fund offered to investors in Europe. 

Financial details were not disclosed, but the fund said it had now acquired a total of nine assets for a total value in excess of €200 mln since its launch a year ago.

In addition to the previously announced healthcare and justice assets in London, Madrid and Milan, FTSIF acquired six new assets in the education and healthcare sectors in Denmark, Germany, Italy, Sweden and UK, amassing 101,000 m2 of rentable area.

The new assets include a university complex in Aachen, a school in Stockholm, a hospital in Venice, a healthcare centre in Brighton, a portfolio of two nursing home facilities in London and a hospital in Copenhagen. The fund is managed by Franklin Real Asset Advisors (FRAA).

'At Franklin Templeton, we define social infrastructure as the physical assets that facilitate social services, helping build strong communities,' said Raymond Jacobs (pictured), managing director and portfolio manager of the fund.

'Investment in social infrastructure offers an opportunity to pursue a dual objective, namely, to generate market financial returns as well as providing a positive social and environmental impact in the wider community. While access to social services across Europe is essential for economic growth and prosperity, not enough is being done to build and adequately maintain the requisite facilities,' Jacobs added.

'Through investing in social infrastructure, investors can add much-needed private capital to boost and protect the social services being provided to communities,' he said.

The fund has a current investor base of 12 European and Canadian institutional investors.

Riccardo Abello, director and portfolio manager for FRAA said: 'We are delighted with the progress Franklin Templeton Social Infrastructure Fund has made since its launch in July 2018.

'We have a solid pipeline of over €500 mln investments across Europe and expect to announce new asset purchases later this year.'


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