Holyrood will seek opportunities from new fund
Legal & General unveils £15 billion plan to rebuild Britain
The announcement was made at a Downing Street Investment in Cities event and is initially aimed at three cities – Birmingham, Leeds and Manchester who joined major UK and international institutional investors at the launch.
L&G is allocating £1.5bn to the vehicle, and working alongside investment partners plans to secure further external funding up to £15bn.
Scottish ministers are bound to be interested in L&G’s initiative as it will fund projects across the UK, providing equity and debt. It will take construction risk and invest in different sectors and projects. The fund should be capable of financing up to 50 projects.
It has been set up as a co-investment vehicle, with L&G acting as both principal investor and manager. L&G said it is “the industrialisation and scaling of a model L&G is already successfully deploying for specific projects including Salford, Canning Town, Plymouth, Bracknell and London.”
It will further benefit from co-operation and collaboration with RIO – the government’s Regeneration Investment Organisation – acting as sponsor to help facilitate a deal pipeline, and work with central and local government on infrastructure projects.
Legal & General chief executive, Nigel Wilson, said: “The UK is a terrific place to invest. We are well-positioned to work alongside UK and international money to channel funds into regeneration that delivers growth, homes and jobs.”
Minister for Cities Greg Clark, who hosted today’s event in Downing St, added: “L&G’s decision to launch a £15 billion regeneration vehicle and invest £1.5 billion is fantastic news and a vote of confidence in the UK economy and our regional cities.”
Other insurers have been encouraged to invest the billions locked up in funds in British infrastructure and may see L&G’s move as a sign of confidence in the idea.