The Lancashire County Pension Fund has committed £25m (€26.5m) to a healthcare fund managed by Kames Capital.
The pension fund backed the Target Healthcare Property fund, a unit trust aimed at institutional investors.
The pension fund’s senior investment manager, Richard Tomlinson, said the investment was a continuation of its long-term strategy of increasing exposure to infrastructure and real estate assets.
“Specialist healthcare property offers an attractive and stable income yield with the potential for capital growth,” Tomlinson said.
“We were attracted to the strong team behind the fund and their best-in-class approach to accessing specialist healthcare assets.”
The unit trust is focusing on specialist care home facilities, Kames Capital said.
The trust, which initially had a five-year fixed life, has been extended by a further five years to June 2020.
Kames Capital head of institutional sales for property, Shaun McWilliam, said the fund has paid a distributed yield to investors of 7.5% over the last three years.
“We believe its premium income yield will continue to prove attractive,” he said.
“Lancashire County Pension Fund’s investment clearly demonstrates its confidence in the management team and the continuing investment case for healthcare assets.”
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