LGPS Central has launched a UK property fund, which has received seed commitments from Leicestershire and Nottinghamshire pension funds.
The LGPS Central UK Direct Property Fund has a medium-term target to invest up to £500m across the UK in a balanced portfolio and is managed in partnership with DTZ investors. It has also completed its first two acquisitions, which include an industrial and car showroom investment on Crown Road, Enfield, and Clayton Business Centre, a multi-let industrial estate in Hayes, West London.
According to LGPS Central, which is one of the eight Local Government Pension Scheme pools, the UK property fund was developed in partnership with its eight partner funds, with Leicestershire and Nottinghamshire pension funds making seed investments.
Gordon Ross, chief investment officer at LGPS Central, said: “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.”
LGPS Central said that responsible investment principles will be included in the investment process of the UK Direct Property Fund.
Sam Brice, fund manager at DTZ Investors added: “The acquisitions [in Enfield and Hayes] 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.”
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