Key Takeaways
- • Delancey has expanded its mandate with one of the UK's largest corporate defined benefit pension schemes, adding up to £400m of discretionary capital for UK real estate.
- • The additional value-add commitment takes the total mandate size to just under £1bn and is available for immediate deployment.
- • The new capital targets value-add, sector-agnostic opportunities and complements the manager's existing core portfolio for the scheme.
- • Delancey has managed the scheme's core portfolio since 2022 and reports three years of outperformance against the MSCI Quarterly Property Index.
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, according to the firm's announcement. The additional value-add commitment takes the total mandate size to just under £1bn. The discretionary capital is available for immediate deployment and will target value-add, sector-agnostic opportunities that complement the existing portfolio.
Delancey has managed the scheme's core portfolio since taking over in 2022. The firm says it has delivered sustained outperformance, reduced arrears, improved environmental performance, resolved fire remediation issues and systematically reduced portfolio operating expenses over that period. Dan Berger, chief investment officer at Delancey, said the scheme had backed the firm's 'proactive core' approach to revitalise the portfolio in 2022, and that the firm had delivered three years of outperformance against the MSCI Quarterly Property Index. He described the further £400m as a strong endorsement of that progress.
The scheme is not named in the announcement. Coverage from other outlets describes the commitment as worth roughly €350.6m, and notes that the capital is intended for value-add real estate. Berger said the firm's focus is now on deploying the capital responsibly while maintaining the same level of performance and service for the scheme's members.
Delancey has managed the scheme's core portfolio since taking over in 2022. The firm says it has delivered sustained outperformance, reduced arrears, improved environmental performance, resolved fire remediation issues and systematically reduced portfolio operating expenses over that period. Dan Berger, chief investment officer at Delancey, said the scheme had backed the firm's 'proactive core' approach to revitalise the portfolio in 2022, and that the firm had delivered three years of outperformance against the MSCI Quarterly Property Index. He described the further £400m as a strong endorsement of that progress.
The scheme is not named in the announcement. Coverage from other outlets describes the commitment as worth roughly €350.6m, and notes that the capital is intended for value-add real estate. Berger said the firm's focus is now on deploying the capital responsibly while maintaining the same level of performance and service for the scheme's members.
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