Schroders Capital has announced it has been awarded a £2bn (€2.3m) real estate mandate by the Wales Pension Partnership (WPP).
WPP, the UK local government pension scheme (LGPS) pooling entity, last week appointed Schroders to manage core UK real estate and impact investments, and CBRE for international real estate. WPP has not disclosed the value of the mandates.
Schroders Capital said that, as part of its real estate mandate, it will invest up to £400m in Wales, focusing on positive impact initiatives such as job creation, affordable housing and healthcare. In addition, the investment manager will seek out impact opportunities across the UK in line with WPP’s net-zero goals.
The remaining portion of the mandate will target core UK real estate investments across industrial, retail and office properties. Schroders Capital will also invest in specialised real estate sectors such as hotels, self-storage and student accommodation, it added.
Sophie van Oosterom, the global head of real estate at Schroders Capital, said: “Our clients and investors are increasingly demanding more from their real estate exposure and managers – they want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value.
“We are committed and well positioned to meeting these advanced challenges and our partnership with WPP is testament to the strength of our proposition.”
Paul Myles, the head of LGPS business development at Schroders, said: “We are committed to delivering relevant and comprehensive investment solutions which meet the increasingly complex needs of our sophisticated clients, both from a philosophical investment perspective but, crucially, in terms of their financial returns and impact targets.”
Councillor Elwyn Williams, chair of the joint governance committee at WPP, said: “The appointment of Schroders Capital concludes the majority of the private markets investment managers for WPP.
“Real Estate is a core asset class for the eight Welsh Constituent Authorities and Schroders Capital will help provide the investment they need to meet their local strategic asset allocations.”
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