Kingston and Sutton commit £55m to projects in London
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The Royal Borough of Kingston upon Thames and London Borough of Sutton Pension Funds have committed £55m to the London Fund, a vehicle which aims to generate positive social and environmental outcomes for Londoners.
The London CIV and Local Pensions Partnership Investments, which run the London Fund, said it closed to new commitments on 31 December 2023 with total fund assets of £250m.
“Through this investment in the London Fund, we have shown that the Kingston and Sutton Pension Fund is committed to investing responsibly, while having a positive impact on the lives of Londoners," said Andrien Meyers, head of pensions and investments for the London Borough of Sutton and Royal Borough of Kingston upon Thames.
London CIV chief executive Dean Bowden said the fund gives partner funds “opportunities to invest in a wider range of infrastructure opportunities, including regeneration, while still aiming for sustainable, long-term risk-adjusted returns for LGPS members."
Chris Rule, CEO of LPPI, added: “The London Fund has been a role model partnership that combines LPPI’s and London CIV’s expertise, creating the scale and efficiencies that prove the value of LGPS pools.”
LPPI, the London CIV and the London Pensions Fund Authority formed the London Fund in 2020 “to help solve some of the housing and infrastructure problems facing the capital”. Investments focus on residential property, affordable housing, community regeneration, digital infrastructure and clean energy. The fund had a target of £300m, according to LPFA. The fund has committed half of this.
Alongside LPFA and the Kingston and Sutton funds, the Haringey Pension Fund is also an investor in the vehicle.
The London Fund has so far invested a total of £87.9m in projects such as Door SLP, a residential investment vehicle by Delancey and Oxford Residential, and Yoo Capital Fund II LP, which is focussed on redeveloping existing assets in life sciences, healthcare and the creative industries, mainly in the Greater London area. The London Fund also has stakes in data centre platform Virtus and in the Edge London Bridge project, a sustainable office tower in St Thomas Street.
Do LGPS funds have an implicit duty to invest in their local area?
