Taurus, L&G Enter $200M Strategic Partnership

The capital commitment will target multifamily assets nationwide.

Legal & General and Taurus Investment Holdings have entered a long-term strategic partnership, the companies announced late Thursday. The new venture is seeking deeper multifamily roots across the country and investor demand for real estate equity exposure.

London-based L&G’s investment in Taurus includes an initial commitment of as much as $200 million in seed capital for multifamily deployment and a boost to its private markets platform with an equity stake in Taurus.

The partnership is also expected to expand L&G’s industrial portfolio and further promote its U.S. development strategy via an established joint venture with Ancora. Launched in May 2022 with the goal of driving science and technology growth across the U.S., the Ancora-L&G partnership has delivered on some $4 billion of existing, planned acquisition and development activity.

“We are launching this partnership now because we see opportunities in the market in both the multifamily and industrial sectors and believe that together L&G and Taurus will bring a unique perspective with a focus on decarbonization and a reduction of energy costs creating future-proofed assets in select target markets,” Alexia Gottschalch, head of U.S. real estate equity, private markets, L&G Asset Management, told Multi-Housing News.

The partners aim to deliver large-scale housing and infrastructure projects with a focus on sustainability and innovative financing.

“In Legal & General, we see a likeminded investor and partner who will help us expand our reach in these areas dramatically at an ideal time of the next investment cycle starting in 2025,” Peter A. Merrigan, CEO, Taurus, told MHN. “We feel that adding financial strength to our entrepreneurial capabilities will help us compete most effectively in a highly competitive landscape.”

Boston-based Taurus, a global real estate private equity firm with a fully integrated real estate operating platform, has acquired or developed more than $11 billion in multifamily, office, mixed-use, renewable energy and industrial real estate.

L&G’s U.S. asset management business first launched in 2006 and now has more than $231 billion of assets under management. The company’s announced goal is to expand its private markets platform to $112 billion in assets by 2028. The company also hopes to build out a full-scale national real estate investment management capability, furthered by its partnership with Taurus.

Optimism in multifamily has been growing with improving national economic conditions and solid fundamentals. As of September, year-over-year national rent growth was 0.9 percent while occupancy in stabilized assets was 94.8 percent.

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