LGPS Central, in collaboration with Partner Funds and managed alongside DTZ Investors, proudly introduces the UK Direct Property Fund, a Sub-fund of the LGPS Central Property ACS. The Fund sets a medium-term target to invest up to £500m across the UK, boasting a balanced portfolio. Initial investment has been seeded by Leicestershire Pension Fund and Nottinghamshire Pension Fund, while welcoming further investments from Partner Funds.

In tandem with the LGPS Central UK Direct Property Fund, LGPS Central and DTZ Investors offer additional flexibility to manage legacy portfolios for Partner Funds, enhancing investment opportunities.

A standout feature of the UK Direct Property Fund lies in its robust integration of responsible investment practices. Supported by LGPS Central’s dedicated Responsible Investment & Engagement Team and DTZ Investors, the Fund integrates responsible investment principles into its core. This includes embedding ESG enhancements into business plans and fostering ongoing tenant engagement to align with ESG objectives.

Gordon Ross, Chief Investment Officer at LGPS Central, emphasised, “Our collaboration with Partner Funds and leveraging DTZ Investors’ extensive experience has driven the development of the UK Property Fund. Their unique approach to portfolio construction, focusing on asset-specific traits, fuels our partnership.”

Ross further stated, “The Fund capitalizes on economies of scale in real estate investing, offering a cost-effective solution as assets under management grow for LGPS Central Partner Funds.”

Sam Brice, Fund Manager at DTZ Investors, expressed enthusiasm, stating, “We’re honored to support LGPS Central and Partner Funds in realising their real estate investment strategy.” Brice highlighted the significance of acquiring Crown Road, Enfield, and Clayton Business Centre, Hayes as pivotal steps for the Fund. The strategy targets diverse tenant-based investments, aiming to grow rental income and align with responsible investment objectives.

The acquisitions strategically focus on robust urban locations, such as Hayes, benefitting from infrastructure-led regeneration. The Fund actively seeks further investment opportunities across the UK, prioritising responsible investment principles.

DTRE represented DTZ Investors and LGPS Central in the acquisitions, while Gerald Eve and BNP Paribas acted for the respective vendors. Burges Salmon LLP provided legal counsel to LGPS Central for the acquisitions.

LGPS Central proudly presents the UK Property Fund, offering investors access to a diversified commercial real estate portfolio in the UK. The Fund emphasizes responsible investment and a range of benefits for investors, showcasing a comprehensive investment offering.UK Direct Property Fund Launched by LGPS Central in Partnership with DTZ Investors