Key Takeaways
- • Delancey has secured up to £400m of additional investment capacity from one of the UK's largest corporate defined benefit pension schemes, taking the total mandate to just under £1bn.
- • The top-up follows three years of outperformance against the MSCI Quarterly Property Index, according to Delancey's announcement.
- • The capital is discretionary, available for immediate deployment, and targets value-add, sector-agnostic UK real estate opportunities.
- • The win is attributed to Delancey's 'Proactive Core' approach, built on five pillars: conviction investing, active asset management, sell discipline, bespoke structuring and a robust ESG overlay.
Summary
UK real estate investment manager Delancey has expanded its mandate with one of the UK's largest corporate defined benefit pension schemes, providing up to £400m of additional investment capacity for UK real estate. The commitment, reported by multiple trade outlets, is structured as an add-on to Delancey's existing relationship with the scheme and lifts the total mandate to just under £1bn. The capital is available for immediate deployment and will target value-add, sector-agnostic opportunities that complement the existing portfolio. The scheme's identity has not been disclosed in the coverage reviewed.
Delancey attributes the decision to its performance since taking over management of the core portfolio in December 2022. According to the firm, it has delivered three years of outperformance against the MSCI Quarterly Property Index, along with reduced arrears, improved environmental performance, resolution of fire remediation issues and a systematic reduction in portfolio operating expenses. The firm says these results were achieved without increasing risk.
The mandate is run under Delancey's 'Proactive Core' approach, which holds that core real estate does not have to be managed passively. Its five pillars are conviction investing, active asset management, sell discipline, bespoke structuring and a robust ESG overlay. Dan Berger, Chief Investment Officer at Delancey, said the client backed the approach 'to revitalise their portfolio in 2022' and that the additional capital is 'a strong endorsement of that progress.' He added that the firm's focus now is on deploying the capital responsibly while maintaining performance and service for the scheme's members.
Delancey attributes the decision to its performance since taking over management of the core portfolio in December 2022. According to the firm, it has delivered three years of outperformance against the MSCI Quarterly Property Index, along with reduced arrears, improved environmental performance, resolution of fire remediation issues and a systematic reduction in portfolio operating expenses. The firm says these results were achieved without increasing risk.
The mandate is run under Delancey's 'Proactive Core' approach, which holds that core real estate does not have to be managed passively. Its five pillars are conviction investing, active asset management, sell discipline, bespoke structuring and a robust ESG overlay. Dan Berger, Chief Investment Officer at Delancey, said the client backed the approach 'to revitalise their portfolio in 2022' and that the additional capital is 'a strong endorsement of that progress.' He added that the firm's focus now is on deploying the capital responsibly while maintaining performance and service for the scheme's members.
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