LONDON, March 17 (Reuters) - British insurer Legal & GeneralGroup Plc (L&G) has bought a portfolio of low-costhousing for 252 million pounds ($419 million), continuing aninvestment drive into UK infrastructure.
The investment is in tune with British government policy tocourt private-sector investment from the likes of insurancecompanies to help renew a creaking infrastructure base atminimal cost to the public purse, and help ease a housingshortage.
L&G said on Monday the portfolio of more than 4,000 homes,over half by value in northwest England, would be bought fromand leased back to housing organisation Places for People on a50-year basis. Places for People will build 7,000 new housingunits with the sale proceeds, spread around Britain, over thenext seven years, L&G said.
L&G and other insurers are keen investors in infrastructuresuch as roads as well as homes because the long duration of thecommitments and the steady, inflation-linked returns from rentsand tolls are well suited for covering pension liabilities.
The new investment is by L&G's Retirement business, whichsells annuities to pensioners who hand over their savings,accumulated during their working lives, in return for aguaranteed income until death.
"This 252 million pounds, 50-year investment demonstratesthe capacity of institutions like Legal & General to help solvethe UK's housing and infrastructure crisis," said L&G managingdirector Paul Stanworth.
Deputy Prime Minister Nick Clegg said: "This is very welcomenews to build thousands of new affordable homes for peopleacross the country."
Legal & General (LGEN)
