Wales pool awards £2 billion property mandate to Schroders

Wales Pension Partnership, the asset pool for the country’s eight Local Government Pension Schemes (LGPS), has appointed Schroders to run a major real estate mandate.

Schroders will run two mandates worth a combined £2 billion. The first is a UK core real estate strategy, and the second is an impact strategy with a focus on Wales.

The impact strategy will involve the Schroders Capital real estate team deploying up to £400 million into positive impact and local investment across Wales, according to a statement from the asset manager.

It will seek to boost local employment opportunities, affordable housing provision, and improved access to healthcare. The mandate also includes the ability to invest across the UK to support the pool’s social investment and net zero ambitions.

The core real estate strategy will invest across industrial, retail and office sectors, as well as “specialist and operational real estate” including hotels, self-storage facilities and student accommodation, Schroders said.

Councillor Elwyn Williams, chair of the Wales Pension Partnership’s (WPP) joint governance committee, said: “The appointment of Schroders Capital concludes the majority of the private markets investment managers for WPP.

“Real estate is a core asset class for the eight Welsh constituent authorities and Schroders Capital will help provide the investment they need to meet their local strategic asset allocations.”

Sophie van Oosterom, global head of real estate at Schroders Capital, said: “Our clients and investors are increasingly demanding more from their real estate exposure and managers – they want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value.

“We are committed and well positioned to meeting these advanced challenges and our partnership with WPP is testament to the strength of our proposition.”

A third international mandate was awarded to CBRE, but the size of the allocation has not been disclosed.

Schroders Capital was previously awarded a £500 million global private equity mandate by the Welsh pool last year. Other private markets managers appointed by the pool include GCM Grosvenor, CBRE, IFM Investors and Octopus for infrastructure, while Russell Investments is implementing a private debt programme.