Secure income manager AlphaReal says it has deployed £350 million of long income real estate-backed investments over nine months on behalf of Just Group with a significant social infrastructure focus.

The portfolio includes more than 100 healthcare facilities providing specialist care for patients with high acuity caring needs, as well as specialist childcare centres, collectively capable of providing care services for approximately 1,800 individuals.

The investments have been originated and structured by AlphaReal to meet Just Group’s requirements, diversified across asset type and sectors throughout the UK, and offering long-dated, inflation-linked cash flows secured against real estate assets and social infrastructure.

Gordon Smith, fund manager at AlphaReal said: “We are delighted to be working with Just Group in originating and managing investments that offer secure, long-dated, inflation-linked cash flows. AlphaReal’s innovative ground rent structures are particularly appealing to investors who recognise that these high-quality cash flows deliver a favourable risk adjusted return and portfolio diversification benefits.”

Boris Mikhailov, head of client solutions at AlphaReal added: “It is great to be working in partnership with Just Group, the UK’s leading retirement specialist. We see increasing interest from insurers in secure income strategies with the trend expected to continue into 2024 and beyond. This is driven by a significant uptick in the volume of defined benefit de-risking activity, with 2023 expected to be another record-breaking year. Insurers, like Just Group, are seeking opportunities that can provide secure cash flows and that’s where strategies like commercial ground rents can be attractive. The introduction of Solvency UK should further increase the appeal of secure income assets to insurers.

Nenna Gilmour-Platt, head of investment strategy at Just Group commented: “These investments provide attractive long-dated cash flows with inflation protection helping us to meet the financial promises we have made to our customers. Our customers have trusted us to look after more than £26 billion of their retirement savings and we want the money we invest on their behalf to have a positive impact on society and the environment. Investing in healthcare facilities and social infrastructure allows us to fulfil our purpose to help people achieve a better later life.”

AlphaReal focuses on the UK commercial ground rent sector UK, and is a prominent asset managers within this asset class in Europe. AlphaReal manages a range of pooled and bespoke mandates for public and private pension schemes as well as insurers.