Merseyside Pension Fund, Liverpool, England, committed £20 million ($26 million) to Hearthstone Residential Fund 1 run by Hearthstone Investment Management, a spokesman said.
The £200 million closed-end private equity fund invests in U.K. residential property. Merseyside's indirect property portfolio invests in funds that provide exposure to returns from the asset class not easily accessible through direct ownership, the spokesman said. The portfolio equals 3% of the £9 billion pension fund's allocation.
"(HRF1's) objective is to build and manage to a high standard a portfolio of mainstream rental properties with the interests of tenants, their communities and institutional investors aligned," said Paul Doughty, Merseyside chairman, in a news release. "This is consistent with our objective to support needed housing development in the region."