PETE GLADWELL Head of Public Sector Partnerships 10 October 2013 Where Public & Private Sectors Intersect: Closing the Divisions to Address a Common Need LEGAL & GENERAL. November 2015 MAY 2013 1 PETE GLADWELL Head of Public Sector Partnerships 10 October 2013 EVERY DAY MATTERS 1
Public Sector… or Private Sector? Conservative 11 mn Labour 9 mn UKIP 4 mn SNP 1.5 mn Liberal Democrats 2.5 mn Green 1 mn 8 mn Number of votes at General Election 2015
Approached with a different mindset… Corporate Social Role: Investing Society’s Long Term Capital to address Society’s Long Term Needs
Flexibility across the Debt / Equity spectrum… Recent Direct Investment Examples: £252m investment 50 Years Investment 4,000 homes nationwide Inflation linked lease (PfP receives all returns over the lease rent, including over 40% of rental income and all capital value growth) Salford Media City Home of BBC Purchase half of a £500mn development Permission for 1,851 homes Shared risk / return with Peel Holdings Walthamstow Purchased Build-To-Rent (PRS) site on open market with outline planning Seeking permission for 350+ units L&G takes full risk and full returns Low Shared Full Risk / Return to L&G
Financial and Social Returns can go hand in hand Central Square, Cardiff – CGI of redevelopment Financial Shared Social Returns valued by both L&G and our Public Sector Partners
Directing Society’s Long Term Capital to the Long Term Need Housing Associations Flexibility to take More HOUSING Care Home Operators Long-Term Investment Developer/Contractor CARE HEALTH Grant (Govt borrowing) Local Authorities (and Govt) Identifying and Quantifying Long Term Need Or Less Risk Seeking an organic and simple transmission of Capital to address Need
Conditions for delivery? 4 Conditions for delivery? Leadership Trust Clarity on requirements Dedication Prioritisation “You only live once, but if you do it right, once is enough.” 7