Royal London Asset Management, on behalf of Royal London, has acquired 21,000 acres (8,500 ha) of prime farmland in a £260 mln (€303 mln) joint venture with South Yorkshire Pension Authority (SYPA).
The acquisition marks the first investment by Royal London Asset Management into agriculture and natural capital.
Located across Cambridgeshire and Lincolnshire, the farmland represents a versatile and diverse portfolio with the potential to increase agricultural output and productivity whilst seeking to employ new environmental strategies.
Mark Evans, head of property at Royal London Asset Management said: 'Working alongside South Yorkshire Pension Authority to invest into the largest farming transaction by capital value in the UK has provided an exceptional opportunity to launch our natural capital strategy.
'It will allow us to explore market leading sustainable practices on a predominantly directly controlled estate and at meaningful scale, whilst aligning with our long-term focus as a mutual business.
'The balance between human and environmental health derived from agriculture will become increasingly relevant and the opportunity to be active investors in this partnership enables us to have more influence over the operations and better engagement with communities, while testing alternative routes to add value.'
The farm’s management company, Waldersey Farms, has been acquired alongside tenanted relationships with other UK businesses, and retains management of the majority of the land.
Royal London Asset Management will seek to reduce environmental impact via innovation, technology and the use of sustainable and regenerative farming techniques whilst investigating nature-based solutions.
Activities may include increasing soil organic matter, lowland peatland restoration, hedgerow afforestation, habitat banking, storage and filtration schemes for improved water quality and renewables.
There is future scope to become a key stakeholder in debates on key issues such as food, carbon, and biodiversity provenance, as well as enhancing nutritional quality. Through lower-carbon agricultural practices this major acquisition can, in time, contribute to Royal London Asset Management’s commitment towards net zero goals.
Cllr Jayne Dunn, chair of SYPA, added: 'South Yorkshire Pension Authority has curated the estate and Waldersey Farms from 400 acres over the last 40 years, establishing itself as one of the UK’s largest food producers.
'As farming moves into a new era of increased complexity, meeting the combined demands of food security, localism, biodiversity enhancement, climate change and more, we felt that the opportunity to introduce a new partner able to more actively manage the estate and fully realise its potential was in both the best interests of the holding and the longer term interest of our scheme members.'
