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Pension groups eye multimillion-pound housing investments in London
Three major London pension groups have joined forces to launch a new “multimillion-pound” fund to invest in new housing projects and infrastructure in the capital.
Despite concerns remaining over the property market, the three groups, which have combined assets of around £57bn, said they want to invest in “build-to-rent, affordable housing and community regeneration projects and infrastructure”.
The groups involved are the Local Pensions Partnership, the London Collective Investment Vehicle and the London Pensions Fund Authority.
A statement from the groups said the new “London Fund” would provide “attractive returns” for its members as well as “support communities in London”.
It is currently unclear how they will go about investing and the rate of return on investment they are expecting, but a spokesperson told Inside Housing more details will be announced when the fund officially launches “in a few months’ time”.
Pension funds are predicted to up their interest in property this year as they seek alternative sources of income thanks to low corporate bond yields and an uncertain macroeconomic environment, according to Alpha Real Capital, a London-based investment services group.
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London’s population is forecast to grow to around 9.5 million by 2026, which will put “pressure on the city’s housing and infrastructure,” the groups said.
They added: “The London Fund is being specially created and designed to address these challenges in a long-term, sustainable way, as well as providing a boost to pension scheme members through the return on investment in large-scale infrastructure projects around the capital.”
London’s property market has suffered a Brexit-induced slowdown, with Foxtons saying a year ago that the market was in a “prolonged downturn”.
However this week estate agents were reporting a strong uptick in potential buyers as signs of a bounce emerged.
Many of London’s largest housing associations have been scaling back their private sale development plans after feeling the impact of the stagnant market.
Inside Housing Development Summit 2020
Inside Housing is pleased to join forces with Homes England and the LGA to introduce the Inside Housing Development Summit.
Taking place on 27-28 April 2020, the summit will gather together local authorities, housing associations, developers, fund managers and advisors for a Chatham House style event focussed on making new connections and exploring new delivery models.
The summit will take place over 28 hours, starting with an afternoon plenary on 27 April, an exclusive development site study tour to Northstowe, England's largest new town since Milton Keynes, followed by a business dinner.
The second day will provide opportunities to network with a range of senior Homes England and LGA staff including Nick Walkley, chief executive of Homes England and Mark Lloyd, chief executive of LGA.
You’ll also meet with leaders from across the development ecosystem and take part in group discussions to help you connect and explore new opportunities. All accommodation and meals will be provided within the fee.
Places for each stakeholder group are limited to ensure a balanced mix of participants and to make sure you leave with the relationships and leads you need.
Click here to book your place or for more information
