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Local Pensions Partnership Launches First Pooled LGPS Real Estate Fund
Fund is LPP Investments’ eighth pooled vehicle dedicated to a specific asset class

Local Pensions Partnership Investments Ltd (LPPI) has set up the LPPI Real Estate Fund to pool the property assets of three public sector pension schemes that it manages.

The LPPI Real Estate Fund has launched with over £800 million of direct UK property investment assets and a further £460 million of property assets are due to transition to the Fund over the coming months. As capital is deployed to meet the pension schemes’ agreed allocations to real estate, the LPPI Real Estate Fund is expected to reach around £2 billion assets under management.

The move offers the schemes a more diversified exposure to a wide range of UK and international real estate. The Fund brings improved scale and other efficiencies in an asset class that can generate stable and resilient income.

The launch of the LPPI Real Estate Fund brings the number of distinct asset class specific investment pooling vehicles that LPPI offers its clients to eight, with each pooled fund focussing on long-term resilience and returns. The LPPI Real Estate Fund is a sub-fund of an Authorised Contractual Scheme (ACS) managed by LPPI.

Chris Rule, CEO of LPP, said:

“The LPPI Real Estate Fund represents another important milestone in LPPI’s three-year history. We now manage more than £17 billion of pension assets on behalf of our clients and their members. We are extremely proud of LPPI’s record in delivering a diverse range of high quality, low cost and distinctive investment propositions to meet clients’ asset allocation requirements.”

Approximately £1.7 billion of real estate assets have, until now, been managed by LPPI via separate mandates for each of LPPI’s pension fund clients, namely the Lancashire County Pension Fund (LCPF), the London Pensions Fund Authority (LPFA) and Royal County of Berkshire Pension Fund (RCBPF), most of which will transition into the Fund.

“We expect to grow LPPI Real Estate ACS’s assets to approximately £2.0 billion over the next three years.”

LPPI has launched the following investment funds and structures focused on specific asset classes since it started operations in April 2016⁺:

  • £651 million Fixed Income Fund
  • £1.4 billion Credit Fund
  • £1.3 billion Global Infrastructure Fund
  • £1.2 billion Private Equity structure
  • £6.7 billion Global Equities Fund
  • £800 million Diversifying Strategies Fund
  • Liquidity Fund [approved by the FCA in October 2016 but not yet launched]

⁺All fund sizes are as at 31 March 2019 The LPPI Real Estate Fund is managed by Local Pensions Partnership Investments Ltd, a wholly owned subsidiary of Local Pensions Partnership Ltd. Local Pensions Partnership Investments Ltd is authorised and regulated by the Financial Conduct Authority.

Disclaimer:

This press release has been prepared to inform the external media of certain information regarding Local Pensions Partnership Ltd (LPP) and its subsidiary, Local Pensions Partnership Investments Ltd (LPPI) only (together the “LPP Group”), subject to the following disclaimer. LPPI is authorised and regulated by the Financial Conduct Authority. It does not provide advice on legal, taxation or investment matters and no statements information or data published by or otherwise made available to the public by the LPP Group whether directly or indirectly and in any form (including written, oral or electronic/digital) should be relied upon for any purpose including (but not limited to) investment decisions. No other person or entity may rely or make decisions based on the content of this press release, whether they receive it with or without LPP Group’s consent, and this disclaimer is repeated fully in respect of any such third party.

This press release may contain ‘forward-looking statements’ with respect to certain plans and current goals and expectations relating to LPP Group’s future financial condition, performance results, strategic initiatives and objectives. By their nature, all forward-looking statements are inherently predictive and speculative and involve known and unknown risk and uncertainty because they relate to future events and circumstances which are beyond LPP Group’s control. Any projections or opinions expressed are current as of the date hereof only and subject to this disclaimer.

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