PGIM Real Estate has been awarded a £265 mln (€311 mln) mandate to develop and manage a UK real return portfolio for Pace, the largest pension scheme operated on behalf of The Co-op in the UK.
The Co-op is the largest consumer cooperative in the world and is owned by its eight million members. The Co-op's businesses include food retail, insurance, funeral care, legal services, electricity and property.
Pace is one of the largest pension schemes in the UK with 90,000 defined benefit members and £11 bn in assets under management, as of 30 September 2016. 'Pace is exploring alternative opportunities to capture inflation-linked returns; PGIM Real Estate demonstrated both its credentials and experience in managing a range of property solutions to deliver this,' said Harry Baines, chair of Pace Trustees.
Acting on behalf of the Pace pension fund, PGIM Real Estate will seek long-term, inflation-linked returns through investments in UK commercial and residential properties, including leisure, social housing, care homes and car parks.
PGIM Real Estate is the global investment management business of New York-listed Prudential Financia. As of end-September 2016, PGIM manages £1.1 bn in UK real estate for its UK pension scheme clients, out of a total of £2.7 bn under management in the UK on behalf of its overall client base, and has commitments of £800 mln to deploy.
