Delancey has expanded its mandate with one of the UK’s largest corporate defined benefit pension schemes, providing up to £400m of additional investment capacity for UK real estate.
The additional value-add commitment takes the mandate size to just under £1bn and the discretionary capital is available for immediate deployment and will target value-add, sector-agnostic opportunities, complementing the existing portfolio.
Since taking over management of the core portfolio in 2022, Delancey said it has delivered strong outcomes for scheme members through sustained outperformance, reduced arrears, improved environmental performance, the successful resolution of fire remediation issues, and a systematic reduction in portfolio operating expenses.
Dan Berger, chief investment officer at Delancey, said: “We measure ourselves by whether we deliver what our client set out to achieve. They backed our ‘proactive core’ approach to revitalise their portfolio in 2022, and subsequently we’ve delivered three years of outperformance against the MSCI Quarterly Property Index. The decision to provide a further £400m of investment capacity is a strong endorsement of that progress. Our focus now is on deploying that capital responsibly and delivering the same level of performance and service on behalf of the scheme’s members.”
