Kingston and Sutton pension schemes join £250m London Fund

The combined Royal Borough of Kingston upon Thames Pension Fund and London Borough of Sutton Pension Funds have committed £55m (€64m) to a real assets investment vehicle set up for UK local government pension schemes (LGPS).

London LGPS CIV (London CIV) and Local Pensions Partnership Investments (LPPI) said the Kingston and Sutton pension schemes have committed the capital to The London Fund which closed to new commitments at the end of last month with total fund assets of £250m.

They join other investors in the fund which include the London Pensions Fund Authority and the Haringey Pension Fund.

The fund invests in the City of London, the 32 London Boroughs and their immediate surroundings, in assets such as residential property – specifically build-to-rent and affordable housing – community regeneration projects, and infrastructure, including digital and clean energy.

London CIV acts as the alternative investment fund manager and LPPI is the portfolio manager for the fund.

Launched in December 2020, the fund has so far invested £87.9m in deals including investing in VIRTUS Data Centres, a London data centre platform via a co-investment with Macquarie Asset Management, committing to Yoo Capital Investment Management’s London real estate fund and DOOR, an investment fund sponsored by Oxford Properties and Delancey.

The fund has also invested in EDGE London Bridge project, a 275,000sqft, 28-floor, office tower in St Thomas Street, London Bridge. 

Andrien Meyers, head of pensions and investments for the London Borough of Sutton and Royal Borough of Kingston upon Thames, said: “Through this investment in The London Fund, we have shown that the Kingston and Sutton pension fund is committed to investing responsibly, while having a positive impact on the lives of Londoners.

“We look forward to working closely with London CIV and Local Pensions Partnership Investments to ensure that this investment is a success for our stakeholders.”

Dean Bowden, CEO at London CIV, said: “We’re delighted Kingston and Sutton’s LGPS are the latest to invest in The London Fund. Our purpose at London CIV is to deliver sustainable prosperity for our communities.

“The London Fund is one of the ways we achieve just this – offering our partner funds opportunities to invest in a wider range of infrastructure opportunities, including regeneration, while still aiming for sustainable, long-term, risk-adjusted returns for LGPS members.”

Chris Rule, LPPI’s CEO, said: “The London Fund has been a role model partnership that combines LPPI’s and London CIV’s expertise, creating the scale and efficiencies that prove the value of LGPS pools.

“LPPI is grateful for the opportunity to collaborate with London CIV and London pension funds, investing together in London real estate, infrastructure and community regeneration projects.”

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