Real estate manager AEW has set up a new open-ended UK impact investment fund, seeded with £100m (€115.5m) worth of properties from its UK-secured income fund.
The €80bn manager said it has launched the AEW UK Impact Fund (UKIF) by transitioning the AEW Real Return Fund’s (RRF) existing portfolio of impact assets into the new fund.
The impact assets comprise specialist-supported living, key worker accommodation and care homes together with ”community and residential-led town centre regeneration projects that influence well-being”.
AEW said it is now actively looking to raise capital on behalf of UKIF, targeting a range of investors, from institutional capital and local government pension schemes to private wealth.
IPE Real Assets understands that UKIF is expected to grow its net asset value to around £500m over the medium term.
The manager said UKIF provides a ”bespoke real estate solution that addresses the place-based needs” of the UK, in collaboration with local authorities, by increasing the provision of sustainable real estate with a social use value.
This includes residential housing, care facilities, nurseries and leisure and community facilities, AEW said, adding that UKIF will adopt an active management, core-style strategy and seek to generate a sustainable income stream and return for investors.
Nick Winsley, the head of AEW UK, said: “The built environment has a huge influence on people’s everyday lives and the launch of our first impact fund provides investors with an opportunity to invest in a way that creates both a tangible positive social and environmental impact, whilst also achieving their return objectives.
”Seeded with a portfolio of strongly performing assets, the fund is already delivering on its social value and cashflow objectives and we are excited to grow the fund from here.”
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