Northern Local Government Pension Scheme pool made a £375 million ($458 million) commitment to Heim U.K. Residential Fund managed by Norwegian firm Heim Global Investor, according to a news release.
Northern LGPS is a £60 billion LGPS pool incorporating Greater Manchester Pension Fund, England; West Yorkshire Pension Fund, Bradford, England; and Merseyside Pension Fund, Liverpool, England.
The Heim’s real estate fund invests in middle-market rental housing, seeking to address what the firm perceives as a substantial undersupply of high-quality, yet affordable rental products. The fund has an £800 million target and aims to develop 5,000 homes in the U.K.
"With Heim, we partner with a manager that brings a significant track record in scaling residential platforms across Europe," said Kevin Etchells, head of real assets at Greater Manchester Pension Fund, in the news release. "Heim shares our belief in the long-term fundamentals of building affordable rental products at scale."
Previous Heim projects include agreeing to forward fund a 375-home development in Leeds, England, with a total development cost of £82 million.
