Legal & General Investment Management expects to finalise a strategy by early summer for lending to the property sector. The proposal is being drawn up by the fixed income division rather than the property group of the top-four UK insurance company.
The strategy is being led by fixed-income product director Ashley Goldblatt, who has been working on the plan since late last year. Two of the UK’s other largest insurance companies, Aviva and Prudential M&G, have been originating or participating in loans for about 20 years.
They have multi-billion pound loan books, and, in Aviva’s case, a significant origination team. This has led to speculation that when LGIM starts lending it could make a significant contribution to easing the short-age of available debt for some parts of the property market.