L&G invests £169m in infrastructure

INSURANCE giant Legal & General has invested £169m in infrastructure assets including a chain of care homes and a planned new hospital.

L&G said yesterday it has acquired 13 care homes from Prestbury Investments for around £70m and invested £89m over a 32-year term as part of a consortium to build a new hospital in Liverpool.

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The announcement follows a pledge on Thursday by rival Aviva to put £500m in British infrastructure.

Insurers are enthusiastic investors in infrastructure because the long duration of the commitments and the steady, inflation linked returns from rents and tolls are well suited for covering the companies’ pension liabilities.