1. PETE GLADWELL Head of Public Sector Partnerships 10 October 2013
INVESTMENT INTO HOUSING: Aligning Long Term Investment with Long Term Social Need LEGAL & GENERAL APRIL 2015
MAY 2013 1
EVERY DAY MATTERS
PETE GLADWELL Head of Public Sector Partnerships 10 October 2013 1

2. billion pound investment programme
LONG TERM INVESTMENT 15
£429m rebuild of the Royal Liverpool University Hospital.
Hyde Housing Group
£102m, 15-year facility
THE ENGLISH CITIES FUND
billion pound investment programme
Schemes in Liverpool, Plymouth, Canning Town, Salford and Wakefield, over 5.4m sq ft of mixed-use space, brownfield land
£40m, 25 year facility enabling 500 affordable homes
£252m investment
50 year lease
Acquiring 4,000 homes
Building 7,00 houses
Methodist Care Homes
£70m long term (30 year) RPI linked lease.
Transport and Logistics c£320m, maturities to 30 years
University of Southampton
£93m, 40 years income
1,104 beds
Sentinel Housing, private placement (registered social housing provider in Hampshire)

3. ‘Patient Money’: Approached with a different mindset…
APRIL 2015
‘Patient Money’: Approached with a different mindset…
Applies to both in-house L&G Annuity and third party pension fund capital

4. The Intersection of Long Term Social Needs
APRIL 2015
The Intersection of Long Term Social Needs
HOUSING
Long-Term Investment
CARE
HEALTH

5. APRIL 2015
Potential Sources of Interference in Transmitting Society’s Long Term Capital to Address Society’s Long Term Needs
More Risk
Derivative Swaps
House Builders
HOUSING
Investment Banks
Long-Term Investment
PFI’s
Developers
CARE
HEALTH
Securitisations
Housing Association
Debt
Gilts (Govt borrowing)
-> Grant
Local Authorities and Govt Identifying and Quantifying Long Term Need
Less Risk
Some have proved themselves vital… others are only in it for themselves!

6. Directing Society’s Long Term Capital to the Long Term Need
APRIL 2015
Directing Society’s Long Term Capital to the Long Term Need
Housing Associations
Flexibility to take More Risk
HOUSING
House builders (For Sale)
Long-Term Investment
Contractors
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 Money to address Need

7. Collaborative approach needed for creative problem-solving
Government to implement Lyons and Armitt to tackle infrastructure and housing shortages
Need for new type of capital to provide housing: long term money with lower return expectations
New level of shared Trust and Ambition between Public and Private Sector Partners
“The significant problems that we have created cannot be solved at the level of thinking we were at when we created them.” – Albert Einstein