Lancashire County Pension Fund (LCPF) has entered into a joint venture with Harworth Group, a brownfield regeneration and property investment company.

The joint venture, Multiply Logistics North, will deliver 10 commercial units totalling 564,000sqft, marking the next phase of Harworth’s Logistics North site in Bolton, Greater Manchester.

LCPF will fund 80% of the acquisition and development costs, with Harworth funding the remaining 20%. They will take corresponding stakes in the joint venture.

The pension fund will pay development management and asset management fees to Harworth in return for it managing the development and assets.

The county pension fund was advised by the Local Pension Partnership (LPP), and Knight Frank Investment Management (KFIM).

The LPP was created by LCPF and the London Pension Fund Authority to manage their assets. Last year it combined the two pension funds’ core property allocations and added specialist income to create a £1.2bn (€1.42bn) UK property pool.

The pension funds allocated £850m to KFIM for UK commercial and residential property investments, £550m of which was from LCPF.

A spokesperson for LPP told IPE that LCPF’s tie-up with Harworth is part of the property portfolio on which it is working with KFIM.

Richard Tomlinson, investment director, real estate and infrastructure at LPP, said: “LPP on behalf of Lancashire County Pension Fund is pleased to be working with Harworth on this exciting property development project to deliver best-in-class logistics facilities in its home region of the North West of England.

“By investing in the North West, the Lancashire County Pension Fund expects to benefit the local economy at the same time as delivering the investment returns required of the fund.”