UK railways pension scheme invests in retail and logistics real estate

The in-house manager for the UK’s £30bn (€35bn) railways pension scheme has invested in UK logistics and retail real estate projects.

RPMI Railpen said it investing £7m to help transform and rebrand Scotland’s Gretna Gateway Outlet Village into Caledonia Park, a premier designer outlet, and has also acquired a 5.85-acre warehouse development site in Waltham Cross, London.

The investment programme for Gretna Gateway is due for completion in the fourth quarter of 2020.

Matthew Howard, head of property asset management at RPMI Railpen, said Caledonia Park will be a vibrant hub for retail and dining in the heart of southern Scotland.

”We have seen outstanding performance to date, and the refreshed offer and re-branding will bring a new level of momentum for the village.

“The strategic regeneration meets our core investment themes and lays the foundations for long-term growth.”

RPMI Railpen said the London site, which it acquired for an undisclosed sum, will be developed for a new speculative warehouse and logistics scheme with Wrenbridge acting as development partner.

Alastair Dawson, senior asset manager at RPMI Railpen, said the purchase of the Waltham Cross site reflects RPMI Railpen’s appetite and ability to commit to large scale speculative developments.

“This is a great addition to our industrial portfolio which will increase our development exposure, while also contributing to our overall fund growth target.

“Primarily though, this executes our successful risk-return strategy to enable us to pay our 350,000 members pensions securely, affordably and sustainably.”

Jeff Wilson, director at Wrenbridge, said a planning application will go in this year, with construction to commence next year.