Northern LGPS, in partnership with Local Pensions Partnership Investments (LPPI), has completed the acquisition of PRS Holdco, the operating arm of real estate investment trust PRS REIT, bringing its entire portfolio of 5,478 single-family homes under joint ownership.
The homes span 71 sites across England, Scotland and Wales.
The £1.1bn transaction marks a big step in delivering long-term, sustainable housing investment for the pension funds.
The partnership plans to deploy an additional £1bn to expand the portfolio by more than 15,000 homes over the next 10 years, to address the UK’s undersupply of quality rental housing while generating stable investment returns.
The joint venture will establish a dedicated property management platform to directly manage the portfolio, promoting strong operational oversight and tenant experience.
“This partnership demonstrates what we can achieve when pension funds work together at scale,” said councillor Eleanor Wills, chair of the Northern LGPS.
Louise Warden, investment director at LPPI, added: “This joint venture, delivered through our LPPI Real Estate Fund, is a great example of the positive impact pension capital can have in the communities of pension fund members, and of the power of cross-pool collaboration.”
Northern LGPS represents the Greater Manchester, Merseyside and West Yorkshire Local Government Pension Scheme funds.
LPPI manages assets on behalf of Lancashire County Pension Fund, the London Pensions Fund Authority and Royal County of Berkshire Pension Fund.
“This investment demonstrates the vital role LGPS pools play through investing at scale in national priorities while creating value for the scheme,” added Alison McGovern, minister for local government.
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