LGPS funds invest £1.3bn in property
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The pension funds for Essex County Council and Hampshire County Council have made the first commitment to a new property solution offered by the Access pool, investing a combined £1.3bn.
CBRE Investment Management will manage the solution, having been appointed by the £35bn Access pool last November to manage both a UK core and a global real estate mandate.
Cllr Mark Kemp-Gee, who chairs the Access Joint Committee, said the commitment by the two funds “demonstrates the benefits of the pooling model where our member authorities are able to realise a number of positives, in this case diversification and cost-efficiencies, to the ultimate aid of their investment objectives for members”.
Hannah Marshall, chief investment officer of UK direct real estate at CBRE, said: “The solution we have been able to provide to the authorities is a great example of how cost saving benefits of pooling can be reaped whilst maintaining access to high quality managers. We look forward to working with Essex, Hampshire and the Access pool as a whole to continue the pooling journey in real estate.”
Private markets programme in full swing
Property is part of Access’ private markets programme. The pool recently issued a tender for two private equity allocators, forming the third phase of the programme, following infrastructure and property.
The two private equity firms will oversee a multi-vintage programme, giving the pension funds the ability to commit to vintages on an ongoing basis over the term of the 30-year mandate. Each vintage needs to be globally diversified and investments need to span primary and secondary funds, as well as co-investments.
Access expects the aggregate annual commitments to be about £500m or more during the first five years on average, with the total across vintages and allocators eventually reaching £4bn to £6bn or more.
The two-stage tender closes at 14:00 BST on 24 May, with interested parties asked to register with Hampshire County Council on the In-Tend e-procurement platform.
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