Updated with clarification
Brunel Pension Partnership, Bristol, England, and Northern LGPS, Droylsden, England, selected PGIM Real Estate to manage allocations to U.K. affordable housing, according to their respective websites.
PGIM Real Estate will manage up to £250 million ($342 million), according to a separate news release by PGIM Real Estate.
Northern LGPS invested £150 million in PGIM Real Estate's U.K. Affordable Housing Fund, according to a news release published on its website Thursday.
"The U.K. has a severe housing shortage which urgently needs to be addressed. Patient long-term capital such as ours is well placed to help address this issue. We look forward to working with PGIM Real Estate and other investors over the coming years to develop the product and deliver an exceptional housing product to residents whilst also achieving a strong income-based return,” Ged Cooney, councillor and chairman of Northern LGPS, said in the release. Northern LGPS has £46 billion in assets under management. A spokesman could not be reached to provide additional information.
A spokesman declined to disclose the Brunel's allocation to the same fund. Brunel has £30 billion in assets.
“We are delighted our clients will now have access to this emerging but underrepresented sector of the U.K. residential market,” Vanessa Jacka, investment principal at Brunel, said in the Brunel release.
“The (PGIM Real Estate) fund is intent on encouraging better practices, both environmentally and socially, in a housing sector where provision has historically been fragmented and left totally to local authorities and housing associations," she added.