Greater Manchester Pension Fund has joined other UK local government pension schemes (LGPS) in backing Henley Investment Management’s second social housing fund.
The £29.4bn (€34.9bn) Greater Manchester Pension Fund has committed an unspecified amount to Henley’s Secure Income Property Unit Trust II (SIPUT II), a fund focused on UK social housing, generating secure income returns through real estate while also creating significant social value.
In June 2022, London-based fund manager Henley secured £55m from two other unnamed LPGS and said it was hoping to raise £300m by the end of that year for SIPUT II which expects to raise £1bn over the next three years for the open-ended fund.
In the latest update, Henley said SIPUT II has a target funding commitment of £200m annually for the fund, with assets generating a projected income of 5-6% annual dividend and a 6-7% total return.
Stuart Savidge, fund managing director at Henley Investment Management, said: “We are delighted to be partnering with the Greater Manchester Pension fund in investing in specialised supported housing across the UK, and we understand their drive for high impact investments across the North West and UK.”
Savidge said SIPUT II has been providing secure accommodation for the most vulnerable people in society, while generating a strong, inflation-linked income stream for investors.
“We look forward to working with Greater Manchester Pension Fund and continue our investment strategy acquiring properties and deliver on our strong pipeline of opportunities. We have the ability to make a positive social impact through our investments and make a real difference to vulnerable people by providing a secure home, along with the support they need,” Savidge said.
Councillor Gerald Cooney, chair of the Greater Manchester Pension Fund, said: “Our impact portfolio seeks to meet our twin aims of investing locally and creating a positive impact whilst generating a positive financial return to meet our pension obligations. I am proud that the Greater Manchester Pension Fund is supporting the Henley Secure Income Property Unit Trust and its effort to invest in UK social housing while also creating significant social value.
“The provision of specialised social housing is particularly acute in the North West and Henley will be investing in high quality accommodation for vulnerable individuals, as well as providing a secure income stream for our pension fund.”
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