Schroders Capital’s private markets business has won a £2 bn (€2.3 bn) real estate mandate from the Wales Pension Partnership (WPP) in the UK, a collaboration of the eight local government pension funds in Wales.
Schroders, whose real estate investment business is led by Sophie van Oosterom, has been picked to deploy up to £400 mln in positive impact and local investments across Wales, including local employment generating opportunities, affordable housing and healthcare.
The mandate will also target impact opportunities across the UK which deliver positive social impact and decarbonisation strategies that support WPP’s net zero ambitions.
The remainder of the mandate will be invested in UK core real estate focused on the industrial, retail and office sectors, as well as specialist and operational real estate such as hotels, self-storage and student accommodation.
This mandate win builds on the £500 mln mandate awarded by WPP to Schroders Capital last year to invest in global private equity.
Van Oosterom, global head of real estate, said clients were ‘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.’
Elwyn Williams, chair of the joint governance committee at WPP, explained: ‘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.’
