The London Fund, a real assets investment vehicle set up by UK local government pension schemes (LGPS), has made a £30m (€35m) commitment to Yoo Capital Investment Management’s London real estate fund.

Local Pensions Partnership Investments and London LGPS CIV said The London Fund has committed the capital to Yoo Capital Fund II (YCFII), a fund owned by Yoo Capital and the Astarte Special Opportunities Platform.

The commitment to YCFII is the second investment for The London Fund, following investment in DOOR, an investment fund sponsored by Oxford Properties and Delancey.

YCFII was launched in late 2019 and targets a £400m fundraise. The fund is focused on redeveloping and repositioning existing assets such as life sciences, healthcare and creative industries assets mainly in the Greater London area.

The fund has acquired the Shepherd’s Bush Market and Saville Theatre, Shaftesbury Avenue assets as its seed assets.

Shepherd’s Bush Market is a 450,000sqft site which the fund plans to bolster by adding affordable housing and office space, including incubator spaces for tech and biotech start-ups and studios for artists and creatives.

Saville Theatre is a 110,000sqft Grade II listed theatre. Located in the heart of London’s West End, Yoo Capital is exploring plans to convert the premises back to a theatre and add additional floors to create a boutique hotel with a suitable joint venture partner.

Richard Tomlinson, CIO of Local Pensions Partnership Investments, said: “We are excited to be working with an experienced team that has invested more than £11bn in private equity investments over 25 years and bring strong relationships with London boroughs.

“Through this partnership we have the opportunity to secure the long-term future of two London landmarks, demonstrating the fund’s investment strategy to support large-scale regeneration projects that serve local communities, create jobs and provide affordable housing, alongside wider social and environmental benefits.”

Mike O’Donnell, CEO of London CIV, said: “As the second investment by The London Fund, I look forward to making further progress in our strategy to deploy capital to long-term and sustainable projects in London which benefit local communities, all while offering good financial returns.”

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