Schroders Capital has set up an impact investment vehicle to invest in real estate projects in deprived areas in the UK.

The manager said the newly launched UK Real Estate Impact Fund, is a “place-based impact investment strategy focused on delivering positive social impact outcomes” across the UK.

“The fund will predominantly invest to bring forward affordable homes, workplaces and mixed-use town centre re-purposing projects with the specific objective to address social deprivation and inequality as well as delivering a financial return,” Schroders said.

The fund aims to deliver solutions that seek to address social challenges faced by a range of beneficiaries including low-income families, community groups, social enterprises and SMEs, said Schroders.

Chris Santer, impact fund manager at Schroders Capital’s real estate team, said: “Real estate is uniquely placed to help address major social inequalities across the UK.

“Through our focus on deprived areas and working to understand the needs of local communities, we believe we can deliver place-based real estate solutions driving social change together with long-term financial value for investors.”

Sophie van Oosterom, the global head of real estate at Schroders Capital, said: “The Covid pandemic exposed and exacerbated the widening gap in social inequality.

“Schroders Capital’s UK Real Estate Impact Fund offers institutional investors the opportunity to be part of the solution to help address regional inequality through investment in real estate assets in more deprived areas in the UK.

“The fund will invest to deliver positive, measurable social impact alongside attractive long-term financial returns.”

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