AlphaReal and Just Group complete £33 million investment in the health sector

AlphaReal, the specialist secure income manager, has structured and invested £33 million of long income real estate backed investments on behalf of the retirement specialist, Just Group plc.

The ground rent investment provides long term finance for a specialist healthcare operator which supports children and adults with acute specialist care needs.

The investments have been originated and structured by AlphaReal to meet Just Group’s requirements, to offer long-dated, inflation-linked cashflows secured against specialist healthcare facilities providing essential social infrastructure.

The 33 facilities located across the United Kingdom provide care facilities for children and adults with learning disabilities, trauma and complex needs. In addition to providing for acute care needs, the care homes seek to develop patients’ confidence, independence and everyday life skills.

Gordon Smith, Fund Manager, AlphaReal said: “We are delighted to continue to work in partnership with Just Group to deliver secure income investments. AlphaReal’s origination and structuring has created high-quality cash flows that deliver a favourable risk adjusted return while also supporting important social infrastructure”.

Michael Glaser, Origination Director, AlphaReal said: “This ground rent investment offers secure, long-dated, inflation-linked cashflows to our capital partner, the retirement specialist, Just Group, while providing long term financing solutions to businesses and real estate owners”.

Nenna Gilmour-Platt, Head of Investment Strategy at the retirement specialist, Just Group commented: “We help people achieve a better later life, that’s our purpose 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 support for essential healthcare services to communities around the country. We’re pleased to add this to the portfolio of healthcare and childcare investments we’ve completed with AlphaReal across the UK.” 

AlphaReal is the market leader in commercial ground rents in the UK, and one of the leading asset managers within this asset class in Europe, having deployed over £2 billion in commercial ground rents to date. AlphaReal manages a range of pooled and bespoke mandates for both public and private pension schemes as well as insurers.

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European Market Monitor Q4 2023

Higher interest rates have had the desired effect of reducing inflation prints, while also reducing economic growth. Secure income real assets remain attractive to investors seeking long-dated inflation-linked income to meet liabilities and diversify their portfolios.