South Yorkshire Pension Authority (SYPA) has acquired a farmland portfolio in a £260m joint venture with Royal London Asset Management (RLAM).
This moves involves the transfer of 21,000 acres of farmland across Cambridgeshire, Lincolnshire, Norfolk and Wiltshire, managed by Waldersey Farms, into the RLAM Natural Capital Fund, with SYPA holding a 46% stake.
The farmland acquisition marks the first investment of RLAM’s newly launched Natural Capital Fund.
According to the Local Government Pension Scheme (LGPS) fund, the £260m transaction “marks a shift in its agricultural strategy”, which aims to enhance the “environmental value of the farmland whilst securing it’s growth potential”.
Jayne Dunn, SYPA’s chair, said: “As farming moves into a new era of increased complexity, meeting the combined demands of food security, localism, biodiversity enhancement, climate change and more, we felt that the opportunity to introduce a new partner able to more actively manage the estate and fully realise its potential was in both the best interests of the holding and the longer term interest of our scheme members.”
According to RLAM, it will seek to reduce environmental impact on the farmland through using sustainable farming techniques and technology, whilst investigating nature-based solutions. These activities include lowland peatland restoration, hedgerow afforestation and storage and filtration schemes for improved water quality and renewables.
Mark Evans, RLAM’s head of property, added: “The balance between human and environmental health derived from agriculture will become increasingly relevant and the opportunity to be active investors in this partnership enables us to have more influence over the operations and better engagement with communities, while testing alternative routes to add value.”
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