Key Takeaways
- • Schroders Capital's real estate team will deploy up to £400m in positive impact and local investments across Wales, including affordable housing, healthcare and employment-generating schemes, under a mandate from the Wales Pension Partnership (WPP).
- • The £400m local and impact arm is part of a wider £2bn real estate mandate awarded to Schroders by the WPP, with at least 50% of impact assets to be located in Wales.
- • Schroders will also manage the UK core real estate strand, focused on industrial, retail and office sectors, while CBRE has been awarded a separate £500m mandate to invest internationally.
- • The WPP, a collaboration of eight Welsh local government pension schemes formed in 2017, is directing the allocation to meet local strategic asset allocations and net-zero ambitions.
- • Schroders Capital's real estate team currently manages £22.1bn in global assets under management.
Summary
Schroders is set to invest in affordable housing as part of a £400m mandate awarded by the Wales Pension Partnership (WPP), according to Inside Housing. Schroders Capital's real estate team will have up to £400m to invest in positive impact and local investments across Wales, covering affordable housing, healthcare and schemes that generate employment. Investments will also target impact opportunities across the UK that deliver positive social impact and decarbonisation strategies supporting the WPP's net-zero ambitions, Schroders said.
The WPP was formed in 2017 and is a collaboration of eight local government pension schemes: Cardiff and the Vale of Glamorgan, Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf. The local and impact real estate arm forms part of an overall £2bn mandate awarded to Schroders by the WPP as part of its real estate investment proposition. Schroders will build an investment programme using fund investments and direct asset investments in UK impact strategies, with at least 50% of assets located in Wales.
Schroders will also manage the UK core real estate strand, which will focus on the industrial, retail and office sectors. Separately, property investment firm CBRE has been awarded a £500m mandate to establish a vehicle investing in funds and direct assets internationally.
Elwyn Williams, chair of the joint governance committee of the WPP, said real estate is a core asset class for the eight Welsh constituent authorities, and that the managers will provide the investments needed to meet their local strategic asset allocations. Sophie van Oosterom, global head of real estate at Schroders Capital, said clients are increasingly demanding more from real estate exposure and managers, with a focus on sustainability, positive impact and operational excellence to optimise long-term income and value. Schroders Capital's real estate team currently has £22.1bn in global assets under management.
In a related development, the Access Pool, a group of 11 local government pension funds, recently named Legal & General (L&G) as its social and affordable housing manager, providing £125m to invest in affordable rent and shared ownership homes across England. L&G subsequently more than doubled the size of its Affordable Housing Fund with a £120m investment from the Greater Manchester Pension Fund.
The WPP was formed in 2017 and is a collaboration of eight local government pension schemes: Cardiff and the Vale of Glamorgan, Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf. The local and impact real estate arm forms part of an overall £2bn mandate awarded to Schroders by the WPP as part of its real estate investment proposition. Schroders will build an investment programme using fund investments and direct asset investments in UK impact strategies, with at least 50% of assets located in Wales.
Schroders will also manage the UK core real estate strand, which will focus on the industrial, retail and office sectors. Separately, property investment firm CBRE has been awarded a £500m mandate to establish a vehicle investing in funds and direct assets internationally.
Elwyn Williams, chair of the joint governance committee of the WPP, said real estate is a core asset class for the eight Welsh constituent authorities, and that the managers will provide the investments needed to meet their local strategic asset allocations. Sophie van Oosterom, global head of real estate at Schroders Capital, said clients are increasingly demanding more from real estate exposure and managers, with a focus on sustainability, positive impact and operational excellence to optimise long-term income and value. Schroders Capital's real estate team currently has £22.1bn in global assets under management.
In a related development, the Access Pool, a group of 11 local government pension funds, recently named Legal & General (L&G) as its social and affordable housing manager, providing £125m to invest in affordable rent and shared ownership homes across England. L&G subsequently more than doubled the size of its Affordable Housing Fund with a £120m investment from the Greater Manchester Pension Fund.
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