The Greater Manchester Pension Fund and South Yorkshire Pensions Authority have invested towards a real estate strategy to help achieve their local investment objectives.
Both Local Government Pension Scheme (LGPS) funds join the London Borough of Newham in committing to asset manager Cheyne Capital’s Impact Real Estate strategy, which aims to build affordable homes available to lower-income and key worker residents.
Gerald Cooney, chair of the Greater Manchester Pension Fund, said: “Our impact portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return. I am proud that the Greater Manchester Pension Fund is supporting Cheyne Impact Real Estate and its effort to provide affordable homes for key workers in Greater Manchester.”
According to Cooney, the investment delivers a competitive risk-adjusted return to ensure the pension fund can fulfil its fiduciary duty and “measurable and positive social change in the Greater Manchester area”.
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Opening later this month, Cheyne Impact Real Estate’s development in Manchester’s New Cross district contains 35% of homes reserved for local key workers at rents.
George Graham, director of South Yorkshire Pensions Authority, added: “As an authority, we are committed to place-based impact investing and using our power as an investor, we can help and provide more homes in South Yorkshire and across the UK, while making the returns we need to pay our members’ pensions.
“It’s a pleasure to have invested our members’ capital with Cheyne Impact Real Estate, helping to provide more affordable and specialist housing in the UK to those who need it the most in the current difficult economic climate.”
South Yorkshire Pensions Authority launched its Place Based Impact Investment portfolio in March, which is set to bring £500m of funding to the region.
Under the portfolio, the pensions authority currently has a pipeline of over £40m of local investment loans for development across South Yorkshire in 2023/24, with around £500m of capital being deployed over the next ten years.
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