Greater Manchester Pension Fund and South Yorkshire Pensions Authority are investing in affordable housing and supported living facilities in the UK through a Cheyne Capital-managed fund.
Cheyne said the two local government pension schemes (LGPS) have backed the Cheyne Impact Real Estate Trust, alongside the London Borough of Newham, an existing LGPS investor in the impact fund. Greater Manchester Pension Fund and South Yorkshire Pensions Authority’s capital commitments were undisclosed.
The open-ended Cheyne Impact Real Estate Trust, launched in 2020 with an initial £150m (€175m) was set up to help tackle the chronic shortage of affordable housing solutions in the UK. Cheyne Impact Real Estate is a socially responsible landlord which delivers property for use as affordable and specialist housing.
A source told IPE Real Assets that the new commitments will contribute towards funding the immediate pipeline of two investments totalling £100m.
The source added that the fund has a “further advanced pipeline of £250m to be funded over the next 12 to 18 months as we receive further commitments”.
Stuart Fiertz, co-founder of Cheyne Capital and head of responsible investment said: “We are delighted that the solution we are offering both to tenants and to investors has resonated with Greater Manchester Pension Fund and South Yorkshire Pensions Authority, as well as with the London Borough of Newham.
“Thanks to their support, we will now be able to expand our portfolio elsewhere in the UK and we are excited at the prospect of announcing some of the future projects in our pipeline.”
Councillor Gerald Cooney, chair of Greater Manchester Pension Fund, said: “Our Impact Portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return. I am proud that the Greater Manchester Pension Fund is supporting Cheyne Impact Real Estate and its effort to provide affordable homes for key workers in Greater Manchester.
“Aiming to deliver a competitive risk-adjusted return to ensure we meet future pension obligations, as well as delivering measurable and positive social change in the Greater Manchester area, Cheyne Impact Real Estate is providing a socially inclusive and place-based solution for economic growth in the region and beyond.”
George Graham, the director of South Yorkshire Pensions Authority, said: “It’s a pleasure to have invested our members’ capital with Cheyne Impact Real Estate, helping to provide more affordable and specialist housing in the UK to those who need it the most in the current difficult economic climate.
“As an Authority we are committed to place-based impact investing and using our power as an investor, we can help provide more homes in South Yorkshire and across the UK, while making the returns we need to pay our members’ pensions.”
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