Key Takeaways
- • Border to Coast Pensions Partnership has committed £70m to forward-fund 139 single-family rental homes (93 houses and 46 apartments) at Springstead Village in Cambridge, marking the LGPS pool's first investment into single-family housing.
- • The investment derives from Border to Coast's UK Real Estate Fund, into which ten Partner Funds have committed £2bn since October 2024, positioning it as the largest such fund within the LGPS structure.
- • Springstead Village is a joint venture between developers Bellway and Latimer; all 139 units will meet minimum EPC B energy efficiency ratings, addressing ESG requirements and reducing tenant operating costs.
- • The deal addresses a material UK shortfall in quality rental housing stock while generating long-term returns for local government pension schemes supporting millions of workers.
- • Border to Coast was advised by Aberdeen Investments on the transaction, which represents a strategic expansion into the residential rental sector as part of broader UK real estate capital deployment.
Summary
Border to Coast Pensions Partnership, the Local Government Pension Scheme (LGPS) pool, has deployed £70m into the forward-funding of 139 single-family rental units at Springstead Village near Cambridge. The investment comprises 93 houses and 46 apartments and marks the partnership's inaugural transaction in the single-family housing sector. Aberdeen Investments provided advisory support on the deal structure.
The capital originates from Border to Coast's UK Real Estate Fund, which has attracted £2bn in commitments from ten Partner Funds since October 2024. This fund is positioned as the largest of its kind within the LGPS framework. The Springstead Village development is operated as a joint venture between major housebuilders Bellway and Latimer and incorporates community infrastructure including primary and secondary school facilities, green spaces, and allotments within the broader masterplan.
A defining feature of the deployment is the ESG profile: all 139 units will achieve a minimum EPC B rating, placing them in the top energy efficiency tier and substantially reducing operational costs for future tenants. This positioning aligns with institutional investor mandates increasingly focused on sustainable asset characteristics alongside financial returns.
Joe McDonnell, Chief Investment Officer at Border to Coast, characterized the transaction as "a landmark deal" addressing the UK's structural undersupply of quality rental housing. He emphasized that the investment demonstrates the scalability advantages of LGPS pooling in accessing institutional-grade opportunities across UK real estate and underscored the alignment between social utility—addressing housing demand—and long-term pension fund returns. The deployment into UK growth-oriented real estate supports the core mandate of funding efficient pension payments for millions of local government workers.
The capital originates from Border to Coast's UK Real Estate Fund, which has attracted £2bn in commitments from ten Partner Funds since October 2024. This fund is positioned as the largest of its kind within the LGPS framework. The Springstead Village development is operated as a joint venture between major housebuilders Bellway and Latimer and incorporates community infrastructure including primary and secondary school facilities, green spaces, and allotments within the broader masterplan.
A defining feature of the deployment is the ESG profile: all 139 units will achieve a minimum EPC B rating, placing them in the top energy efficiency tier and substantially reducing operational costs for future tenants. This positioning aligns with institutional investor mandates increasingly focused on sustainable asset characteristics alongside financial returns.
Joe McDonnell, Chief Investment Officer at Border to Coast, characterized the transaction as "a landmark deal" addressing the UK's structural undersupply of quality rental housing. He emphasized that the investment demonstrates the scalability advantages of LGPS pooling in accessing institutional-grade opportunities across UK real estate and underscored the alignment between social utility—addressing housing demand—and long-term pension fund returns. The deployment into UK growth-oriented real estate supports the core mandate of funding efficient pension payments for millions of local government workers.
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