Local Pensions Partnership, London, has combined the existing real estate allocations of two local authority pension funds to create a £1.2 billion ($1.6 billion) real estate investment pool, a spokesman for the LPP said.
The LPP is a £10 billion asset and liability management partnership between the London Pensions Fund Authority and Lancashire County Pension Fund, Preston.
Knight Frank Investment Management, which already runs the LCPF’s £550 million real estate allocation, also will manage a new £300 million allocation from the LPFA. The spokesman did not specify the source of the new funds. KFIM will source, execute and manage investment opportunities in U.K. commercial and residential real estate for the £850 million allocation.
The allocation will be pooled with an existing £260 million specialist income and value-added strategies allocation, which includes the LCPF’s Gatefold housing development in West London, student housing, retirement home investments, and the LPFA’s existing investment in Pontoon Dock, a housing development project. The split was not disclosed.
The spokesman said asset pooling will take place over time. However, the LPP will oversee the management of the allocations — which remain on separate balance sheets for now — on behalf of the LPFA and LCPF.