The Wales Pension Partnership has appointed Schroders and CBRE IM to help it build a real estate investment proposition.
The WPP, which comprises eight local government pension funds covering the whole of Wales with some £22.5bn of assets, has appointed the duo to help it invest in real estate based around three core pillars.
Those pillars include UK core real estate, where it wants to take existing pooled fund investment and transition them to an open-ended direct property investment portfolio; international real estate, where it wants to set up an open-ended investment vehicle to invest in funds and direct assets around the world; and local impact investment, where it is keen to develop an investment programme utilising fund investments and direct asset investments in UK Impact strategies, with at least 50% of assets located in Wales.
Of the £22.5bn of assets held in the WPP, some 70% – or £15.7bn – has already been pooled.
Schroders will manage the UK core real estate and local impact plans for the WPP, with CBRE IM taking up the global mandate.
Elwyn Williams, chair of the joint governance committee at the WPP, said: “Real estate is a core asset class for the eight Welsh constituent authorities and these managers will provide the investments they need to meet their local strategic asset allocations.”
The hunt for advisers for the new real estate investment strategy was launched last November.
Pension scheme funds that make up the WPP are Cardiff and Vale of Glamorgan, City and County of Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf.
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