Lambeth Council Pension Fund has allocated £42m to the private real estate sector by investing in Invesco’s Real Estate UK Build to Rent strategy.
The scheme, which is in the process of pooling its resources into London CIV and as of March last year had £1.35bn in assets, intends to invest about 12% of its portfolio in real estate.
By investing with Invesco’s Buy to Rent strategy, the scheme aims to complement its European commercial property portfolio and diversify its real estate portfolio.
Invesco’s strategy has committed to 10 investments in the UK, in Exeter, Greater Manchester, Liverpool, the Southeast and four in London. It currently owns 1,700 units in total, including those under construction, which are worth around £425m.
Andrien Meyers, head of treasury and pensions at the London Borough of Lambeth Pension Fund, stresses that the investment will help to address negative cash-flows at the scheme for the next six years or more, whilst also tackling the need for income. He also highlights that the allocation has been future proofed in order to be compatible with the government’s plans to pool pension fund assets.
”The Lambeth Fund would like to think its playing a small part in addressing the Country’s housing crisis via its investment in this infrastructure type asset class – as there are currently projects within the pipeline that lay within the Borough of Lambeth,” Meyers adds.