Kensington & Chelsea’s £1.1bn pension fund to ramp up property investments
The Royal Borough of Kensington & Chelsea Pension Fund plans to increase its interests in real estate by 15%.
The pension fund aims to boost its investment in property to 20%, from 5%. According to its latest accounts for the year ending 31 March 2018, the fund’s assets totalled £1.1bn during the period.
It has been consulting with agents and advisers on its property strategy, which includes acquisitions, disposals and asset management.
The Royal Borough of Kensington & Chelsea Pension Fund plans to increase its interests in real estate by 15%.
The pension fund aims to boost its investment in property to 20%, from 5%. According to its latest accounts for the year ending 31 March 2018, the fund’s assets totalled £1.1bn during the period.
It has been consulting with agents and advisers on its property strategy, which includes acquisitions, disposals and asset management.
The fund plans to appoint advisers by May on a four-year contract, with fees valued at around £4m.
A spokesman for Kensington & Chelsea Council said: “These investments are made with a view to the best long-term, optimal, risk-adjusted performance for the pension fund over the decades ahead, within a diversified portfolio.
“The risk management approach underpinning our investment strategy is designed to make sure any short-term volatility in one category of asset is balanced by diversified investments elsewhere within the portfolio.”
Real estate investment is becoming an increasing area of focus for local authorities. Overall, total public sector spend on property peaked at £1.9bn in 2018, according to Radius Data Exchange, beating the 2017 record of £1.8bn.
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