Welsh pension pool invests £30m in real estate lender

“The commitment particularly supports SME house builders, a sector which is struggling to access bank funding after recent regulatory changes,” the organisations said.

They added that private debt is a “critical component in the government’s plan to build 1.5 million new homes”, particularly through the ability to recycle investments.

The investment marks a “major expansion into Wales” for Pluto Finance, which is a specialist in development and bridge lending for UK property developers.

Part owned by the Universities Superannuation Scheme, the UK’s largest pension scheme, Pluto Finance said its vehicles have lent over £3bn for the development of more than 12,000 new homes since its creation in 2011.

Elwyn Williams, chair of the joint governance committee at the WPP, said: “The Wales Pension Partnership is committed to providing productive capital into Wales and we are delighted to have found a solution that delivers both in financial and local impact terms.

“This investment made through our private debt allocator, Russell Investments, will look to support both the Welsh economy and the affordable housing needs of our local community.”

Ashley Manning-Brown, head of UK investor solutions at Pluto Finance, added: “By utilising our innovative approach to place-based investment, the WPP will be supporting local communities and their housing needs, while delivering investment and SME job creation into the region.”

The WPP was established in 2017. It is a collaboration between Cardiff and Vale of Glamorgan, City and County of Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf pension funds.

Last year, the pension partnership awarded a £400m mandate to asset manager Schroders to invest in positive impact and local investments across Wales.