Border to Coast Pensions Partnership is investing £70m (€80.3m) to forward fund a 139 single-family rental homes project in the East of England.
The UK local government pension scheme (LGPS) pool, investing through its UK Real Estate Fund, is funding the project at Springstead Village, Cambridge.
The transaction, advised by Aberdeen Investments, marks the first single-family housing investment for the UK real estate fund, which has seen £2bn in capital commitments from 10 partner funds to the strategy since October 2024.
Joe McDonnell, CIO at Border to Coast Pensions Partnership, said: “This is a landmark deal for our partnership. The UK faces a significant shortfall in quality homes to rent and our first investment in single-family housing at Springstead Village will help meet this demand, aligning social and economic value with long-term returns for partner funds in a UK growth sector.
“The investment is a clear demonstration of the power of LGPS pooling to unlock access to strong investment opportunities across the UK. Our UK Real Estate Fund, the largest of its kind in the LGPS, seeks to direct long-term capital into the UK, delivering stronger returns that support the efficient payment of pensions for millions of local government workers.”
Iain Leheny, deputy fund manager at Aberdeen Investments, said: “A lot of the UK’s housing stock is ageing and hasn’t adapted to how people live today, with the country facing a shortage of good quality, modern housing, while home ownership is also increasingly out of reach for many.
“The private rental market is a vital part of the housing ecosystem and build to rent accounts for just 2% of stock – well behind our international peers.”
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