You are viewing 1 of your 1 free articles
Welsh pension fund and investment manager target social housing with launch of £51m fund
A Welsh local government pension scheme and an investment manager have launched a £51m local impact fund to develop social housing, infrastructure and social care.
A Welsh local government pension scheme and an investment manager have launched a £51m local impact fund to develop social housing, infrastructure and social care #UKhousingSwansea Council and Newcore Capital said they launched the fund to focus on delivering positive social outcomes for the area, as well as strong financial returns for investors.
The Newcore Swansea Social Infrastructure Partnership (NSSIP) is a limited partnership, with the council investing as the administering authority of the £3.6bn City and County of Swansea Pension Fund.
Newcore Capital has been named general partner and will manage the fund, targeting value-add and core-plus investments, which are typically moderate, rather than low, risk.
Read more
These will include existing assets that can be refurbished, as well as strategic land for development, income and planning opportunities.
Newcore said it had voluntarily waived performance fees for the vehicle.
The 10-year fund is aiming for an internal rate of return of 8% to 10% per year, net of fees, and is also open to other investors “interested in improving outcomes in the Swansea region”.
Jeff Dong, head of finance for the City and County of Swansea Pension Fund, said: “This partnership presents us with a unique opportunity to enhance and expand social infrastructure, social housing and social care provision in the Swansea city region, while generating strong and steady returns for the Swansea local government pension scheme.”
Hugo Llewelyn, chief executive of Newcore Capital, said: “With this partnership, we hope to provide a blueprint for how private capital can be used to address the UK social infrastructure funding gap in a sustainable manner, while at the same time delivering strong, stable returns as an investment proposition.
“There is a clear opportunity for local government pension schemes to commit to investments in local social infrastructure, which can deliver sustainable returns while improving the scale and quality of much-needed local services through the provision of physical assets that enable them.”
Newcore currently manages approximately £700m and recently launched a social infrastructure fund, with investors including the East Riding Pension Fund and the Parliamentary Contributory Pension Fund for MPs.
The City and County of Swansea Pension Fund is part of the Wales Pension Partnership, which recently invested £30m in Pluto Finance to develop affordable housing.
Sign up for our Wales newsletter
New to Inside Housing? Click here to register and receive our Wales round-up straight to your inbox
Already have an account? Click here to manage your newsletters
Related stories
