The pool said its new UK direct property fund has already completed two acquisitions of an Enfield-based industrial and car showroom, and a West London multi-let industrial estate.
The pool, which looks after the assets of eight LGPS funds in the Midlands, has received an investment seed for the fund from Leicestershire and Nottinghamshire Pension Funds, and will allow further investment from other partner funds as an open-ended vehicle.
The new fund, which is a sub fund of the LGPS Central Property authorised contractual scheme, will be supported by the pool’s specialist responsible investment and engagement team, and managed in partnership with DTZ Investors.
LGPS Central chief investment officer Gordon Ross said: “We have developed the UK Property Fund in collaboration with our partner funds and utilising the vast experience and networks of DTZ Investors. Their differentiated approach to portfolio construction and management, focusing on specific traits of the assets rather than purely sector and geographic focus, is a key driver of our partnership.”
He added: “The UK property fund is designed to take advantage of the economies of scale that come with real estate investing providing a cost-effective investment solution for LGPS Central partner funds as assets under management increase.”
DTZ Investors fund manager Sam Brice said: “We are delighted to have been appointed to support LGPS Central and the partner funds in realising their real estate investment strategy; the acquisition of Crown Road, Enfield and Clayton Business Centre, Hayes are an important first step in building the new fund.
“The acquisitions reflect a strategy that will target investments with a diversified tenant base, with opportunities to grow rental income and which are capable of being managed to meet our responsible investment objectives.
“Both Enfield and Hayes reflect our geographic bias to investing in strong urban locations with Hayes in particular benefitting from wider infrastructure led regeneration. The fund is actively seeking further opportunities to deploy capital in key markets across the UK with a focus on implementing our responsible investment philosophy.”
Dowley Turner Real Estate advised LGPS Central and DTZ Investors, while Burges Salmon provided legal advice to the pool on its acquisitions. BNP Paribas and Gerald Eve acted for the vendors.
