Leicestershire County Council Pension Fund, Leicester, England, hired Kames Capital to run a real estate allocation, said Colin Pratt, investments manager at the pension fund.
The £2.75 billion ($4.7 billion) pension fund committed £25 millon to Kames Capital Active Value Property Fund, a closed-end fund that targets investment in high-quality secondary properties.
The fund targets a return of 8% to 10% per year, and has a seven-year life, with the option of extending that for an additional two years.
The allocation is a stand-alone investment within the pension fund’s opportunity pool, and is not part of the pension fund’s 10% strategic benchmark weighting to real estate, said Mr. Pratt in e-mailed comment. The pension fund allows up to 10% of its assets to be in the opportunity pool for investments in allocations that do not fit in with other strategies.