ACCESS, one of the eight Local Government Pension Scheme (LGPS) pools, has launched two new mandates covering UK core real estate and global real estate.
The LGPS pool has outlined that the size of the UK core real estate mandate is anticipated to be c.£1.25bn, with including a £550m global real estate mandate. It added that both mandates have the “potential” to grow thereafter in line with administering authorities’ strategic asset allocations.
Specialist manager CBRE Investment Management has been chosen by ACCESS to manage both property mandates.
Mark Kemp-Gee, chairman of the ACCESS joint committee, stated that the LGPS pool chose CBRE to manage the mandates due to its “extensive expertise and deep knowledge of the [real estate] market”.
ACCESS is the investment pool for 11 LGPS funds and has pooled around £34bn of assets. It stated that real estate is the first illiquid asset class that ACCESS has considered for pooling within private markets.
Hannah Marshall, chief investment officer for UK direct real estate at CBRE, said: “We look forward to this collaboration with ACCESS and building a portfolio that aims to generate sustainable income and provide long-term value to its members.”
The launch of ACCESS’s real estate mandates comes as other LGPS funds look to invest in the asset class, with Cornwall Pension Fund announcing last week that it had provided forward funding for the development of a rental housing scheme in partnership with PGIM Real Estate.
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