Several local authority pension schemes have invested in the social and environmentally-focused Bridges Property Alternatives Fund IV.
The retirement schemes of Greater Manchester, West Midlands, East Riding and West Yorkshire backed the fund’s £220m capital raise. The Environment Agency Pension Fund joined them in supporting the impact investor as did a US pension fund.
Bridges Property Alternatives not only targets a financial return, but also to make a social impact. It intends to regenerate areas by building properties suitable for older people to live in and reduce carbon emissions.
The new fund closed four deals before the capital raise closed. An assisted-living project, a shopping centre in Glasgow, 500 residential units in Croydon along with an industrial and office project in the Midlands will benefit from this funding.
Bridges Fund Management, its investment manager, has in the past few years generated IRRs of between 11% and 57% from its funds. These results, along with the social impact element of the fund, have attracted pension scheme cash.
Bridges Fund Management partner and head of property funds Simon Ringer said: “Our last three funds have demonstrated very clearly that by investing in needs-driven sectors where we can promote greater inclusivity and sustainability, we can not only deliver powerful societal impact but also strong financial returns for our investors.
“The success of this fundraise is testament to that, and we are excited to have the opportunity to demonstrate this again in the coming years,” he added.
