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Lancashire County Pension Fund invests in London 'built-to-rent' development

09 June 2017

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Lancashire County Pension Fund (LCPF) has invested in a purpose-built rental development in Hayes, west London.

The development, 'The Gatefold', is a significant investment by the scheme into the UK's 'built-to-rent' sector.

LCPF is part of the Local Pensions Partnership (LPP), a local government owned pension services company, which it formed in conjunction with the London Pension Fund Authority in 2016.

LPP provides a pension service for public sector funds, including LGPS, firefighters and police schemes.

It aims to work to benefit its members, employers, partner funds and customers, rather than achieve profits for shareholders.

LPP investment director Richard Tomlinson said the organisation is pleased with the completion of its first built-to-rent (BTR) investment.

"The investment was attractive because it is expected to deliver long-term cash returns that are likely to increase with inflation, at the same time as helping to deliver much-needed housing in the UK," he said.

The Gatefold is part of a regeneration project and Invesco Real Estate, the company managing the investment on behalf of LPP, said there is an increased appetite for real estate from institutional investors.

John German, senior director for residential investments at Invesco Real Estate, said: "We are delighted to have provided this opportunity for Lancashire Country Pension Fund, giving them access to this important sector."

"We believe the Greater London residential market remains one of the most important real estate markets in the world for occupiers and investors, creating long-term demand and liquidity for high quality products, and we expect investments in this market to out-perform the mainstream UK residential market."

This latest investment follows the launch of LPP's Private Equity structure in April this year, to coincide with its first full year of operation.

First published 09.06.2017

Lindsay.sharman@wilmingtonplc.com