Key Takeaways
- • Schroders Capital, the $97.3 billion private markets business of Schroders Group, has been awarded a £2bn real estate mandate by the Wales Pension Partnership (WPP), one of eight Local Government Pension Scheme pools in England and Wales.
- • Up to £400 million will be deployed in positive impact and local investments across Wales, including employment-generating opportunities, affordable housing and healthcare.
- • The remainder of the mandate will be invested in UK core real estate across industrial, retail and office sectors, plus specialist and operational assets such as hotels, self-storage and student accommodation.
- • The award builds on a £500 million global private equity mandate WPP gave Schroders Capital the previous year, extending the relationship across asset classes.
Summary
Schroders Capital, the private markets arm of Schroders Group with $97.3 billion in private markets assets, has been awarded a £2bn real estate mandate by the Wales Pension Partnership (WPP). WPP is a collaboration of the eight Local Government Pension Scheme (LGPS) funds in Wales and one of eight LGPS pools in the UK, according to the source article.
The mandate extends an existing relationship. WPP previously awarded Schroders Capital a £500 million mandate to invest in global private equity. Schroders Capital's real estate team will deploy up to £400 million in positive impact and local investments across Wales, targeting employment-generating opportunities, affordable housing and healthcare. The mandate will also target UK impact opportunities that deliver positive social outcomes and decarbonisation strategies supporting WPP's net zero ambitions.
The balance of the mandate will be allocated to UK core real estate focused on the industrial, retail and office sectors, as well as specialist and operational real estate including hotels, self-storage and student accommodation.
Sophie van Oosterom, Global Head of Real Estate at Schroders Capital, said clients and investors are increasingly demanding more from real estate exposure and managers. "They want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value," she said.
The mandate extends an existing relationship. WPP previously awarded Schroders Capital a £500 million mandate to invest in global private equity. Schroders Capital's real estate team will deploy up to £400 million in positive impact and local investments across Wales, targeting employment-generating opportunities, affordable housing and healthcare. The mandate will also target UK impact opportunities that deliver positive social outcomes and decarbonisation strategies supporting WPP's net zero ambitions.
The balance of the mandate will be allocated to UK core real estate focused on the industrial, retail and office sectors, as well as specialist and operational real estate including hotels, self-storage and student accommodation.
Sophie van Oosterom, Global Head of Real Estate at Schroders Capital, said clients and investors are increasingly demanding more from real estate exposure and managers. "They want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value," she said.
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