LGPS Central has committed an undisclosed amount to Invesco Real Estate’s open-ended European real estate debt fund as part of a strategy to expand its private credit portfolio.
The £100bn (€117bn) UK local government pension scheme pool has backed the Invesco Commercial Mortgage Income - Europe Fund (CMI Europe), which targets senior loans secured against real estate in the UK and continental Europe.
The commitment follows recent deployments by CMI Europe, a vehicle launched in 2022 that closed around £82m across three deals in the second quarter, including a London self-storage portfolio, a Madrid hospitality asset and a Barcelona office.
The fund’s investor base also includes the London Borough of Merton Pension Fund, which allocated to the strategy in late 2025.
IPE Real Assets understands that the CMI Europe fund, which raised €290m at its third close in August last year, has now secured €500m in total capital commitments, with LGPS Central being a “significant contributor” in the latest fundraising round.
As previously reported at the fund’s launch, Invesco aimed to raise an initial €1bn for the open-ended vehicle.
Nadeem Hussain, head of private markets and real assets, LGPS Central, said: “We continue to take a highly active approach to our private credit investment portfolio for the long-term benefit of our partner funds. This includes effective diversification into real asset credit which encompasses both property and other real asset-backed credit strategies, but also extends to a much wider set of investments, including direct lending and other credit opportunities.
“Stable income yield, strong credit protections and a robust collateral underpin are critical elements of our real asset credit investment strategy. Invesco’s CMI Europe fund met our criteria and was viewed as complementary to other real asset credit investments within our portfolio.”
Stephen Messenger, head of UK strategic institutions at Invesco, said: “We’re delighted that LGPS Central has selected CMI Europe for its real estate credit exposure.
“The addition of such a prestigious UK institution is further endorsement, in our view, of the significance of European real estate credit in the current market and the quality of our global real estate credit platform.”
Andrew Gordon, managing director and head of real estate credit for Europe at Invesco Real Estate, said: “The past 12 months has seen an acceleration in lending activity for Invesco, reflecting both our strong conviction in key markets, our long-standing relationships with prime sponsors and the trust our clients, such as LGPS Central and other recent institutional investors, place with us.
“In Europe, Invesco Real Estate is very well positioned to grow our lending activity much further. We continue to see strong demand for dedicated solutions and strong interest from institutional investors attracted to the competitive returns and portfolio diversification benefits which can be achieved.”
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