The Local Pensions Partnership (LPP) has created a £1.2bn property investment pool by combining the property assets of its two members: the London Pension Fund Authority (LPFA) and Lancashire County Pension Fund (LCPF).
LPFA and LCPF have handed £300m and £550m, respectively, to Knight Frank Investment Management (KFIM) to source, execute and manage investment opportunities in the UK commercial and residential property space.
LPP said this £850m will be combined with an existing allocation of £260m for “specialist income and value-add strategies”. This includes LCPF’s Gatefold housing development in West London and its student housing and retirement home investments, as well as LPFA’s investment in East London housing development project, Pontoon Dock.
LPP managing director (investments) and co-chief investment officer Chris Rule (pictured), said: “This allocation extends further the strategic partnership between LCPF and LPFA through the Local Pensions Partnership. We’re pleased to not only be talking about collaboration and pooling across the LGPS, but actively engaging in it.”
KFIM head of fund management John Styles added: “We look forward to building on our track record of exceeding LCPF’s target returns by investment and active asset management of core UK properties in the LPP property pool. We are also excited at the prospect of partnering with developers and managers to access specialist sectors and value add opportunities for the Fund. The new LPP property pool allocation will take KFIM’s assets under management to in excess of £1.75bn.”
LCPF continues to have £300m invested in affordable and shared ownership housing through its debt financing of Heylo Housing.
