L&G acquires 75% stake in Proprium Capital Partners

Real estate owner and asset manager Legal & General (L&G) is boosting its real estate investment capabilities by acquiring a 75% stake in Proprium Capital Partners.

Amsterdam - sourced from L&G

Proprium, spun out of Morgan Stanley in 2013, is a global real estate private equity firm managing $3.5 bn (€3.1 bn) in assets. It focuses on investing in real estate operating companies across various sectors like residential, hospitality, and logistics, primarily in Europe and Asia-Pacific.
Their portfolio includes a&o hostels, Admiral Taverns pubs, and Avid in Australia, having previously held a stake in Motel One. Over the past 18 months, Proprium has been very active, selling over $1.8 billion (€1.6 bn) in assets, acquiring $1.6 bn (€1.4 bn), distributing over $800 million (€712 mln) to investors, and securing over $600 million (€534 mln) in new equity commitments.
This acquisition supports L&G's strategic expansion into European and Asia-Pacific markets and its goal of growing its private markets platform to £85 bn (€76 bn) by 2028. Investing in these regions offers client portfolios greater diversity and opens up opportunities in sectors like real estate, which are benefiting from large-scale trends like demographic shifts and deglobalization. L&G will also invest up to $300 mln (€267 mln) in Proprium's future funds.
Eric Adler, CEO, Asset Management, L&G, said: “Recognizing that international scale in private markets is key to delivering against L&G’s growth strategy, this strategic investment in Proprium will expand our geographical footprint, deepen our capabilities, broaden our investment strategies, and diversify our product offering. Through this acquisition, we are bringing clients a differentiated and diversified opportunity to access value creation in real estate sectors positioned for growth and scalability.”
Bill Hughes, global head of Private Markets, L&G, commented: “In the last 12 months we have significantly accelerated the growth of our Private Markets platform, laying the foundations for achieving our ambitious target of £85 billion by 2028. The partnership with Proprium will strengthen L&G’s investment capabilities and broaden our product offering, allowing us to bring a select range of strategies that aim to deliver the higher returns that many global investors are seeking.”
Tim Morris and Philipp Westermann, co-managing partners of Proprium Capital Partners, said: “Today’s announcement is testament to the strength of Proprium’s track record in delivering strong, risk-adjusted returns for investors. On behalf of the Proprium team, we are incredibly excited about the partnership with L&G, their financial backing, and growth ambitions. Their investment opens new doors to international markets as L&G builds out its global real estate business, representing a significant milestone in the evolution of our platform at a time of immense opportunity.”
Proprium's management team will continue to operate independently after the acquisition, retaining their existing leadership, staff, and investment process. They will, however, benefit from being part of L&G's broader private markets platform. The deal is expected to be finalized by the end of 2025, pending regulatory and antitrust approvals.
L&G's current real estate portfolio, worth approximately £22 bn (€19 bn), spans various sectors, from large-scale urban regeneration and industrial properties to diverse residential investments including affordable housing, build-to-rent, and student accommodation.