Macquarie Asset Management, on behalf of Just Group, is investing £400 million in notes that tied to a collection of commercial ground leases.
These notes are secured against a diverse portfolio that encompasses 55 ASDA supermarket sites spread across the UK.
”The ‘innovative transaction’ enables ASDA Group to raise £400 million of alternative long-term financing while retaining its freehold property interests. The transaction also enables Macquarie Asset Management’s clients to gain exposure to a high quality, long-term income stream from ground lease payments generated by the portfolio,” said Macquarie ina press release.
Hugo James, Managing Director at Macquarie Asset Management,said: ”As the pace of risk transfer from pension funds to the insurance sector continues to grow, our ability to structure and invest in high quality income streams is increasingly important for our clients. We believe that the innovative structure created for this transaction can provide borrowers with a scalable financing option not previously available in the asset class.”
Nenna Gilmour-Platt, Head of Investment Strategy at the retirement specialist Just Group,said: “We help people achieve a better later life, it’s our purpose at Just and why we exist. Investments like this help us fulfil that purpose by providing long-term income for our customers; and at the same time enable businesses to continue to provide essential services to communities around the country. We’re pleased to add this to the portfolio of investments we’ve completed with Macquarie in healthcare, education, and local authority sectors across the UK.”
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