Schroders Capital has been awarded a £2bn real estate mandate by the Wales Pension Partnership (WPP), a collaboration of the eight LGPS funds in Wales, and one of eight Local Government Pension pools.
Schroders Capital will deploy up to £400m of this in positive impact and local investments across Wales, which will include affordable housing and healthcare investments, generating local employment opportunities.
The mandate will also target impact opportunities across the UK which deliver positive social impact and decarbonisation strategies that support WPP’s net zero ambitions.
The remainder of the mandate will be invested in UK core real estate focused on the industrial, retail and office sectors, including investments in hotels, self-storage and student accommodation.
This builds on a previous mandates WPP has awarded to Schroders Capital, the private markets division of Schroders Group, which runs around $97.3bn (£75.7bn) of assets.
Schroders global head of real estate Sophie van Oosterom says: “Our clients and investors are increasingly demanding more from their 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. We are committed and well positioned to meeting these challenges and our partnership with WPP is testament to the strength of our proposition.”
Schroders head of LGPS business development Paul Myles adds: “We are committed to delivering relevant and comprehensive investment solutions which meet the increasingly complex needs of clients, both from a philosophical investment perspective but, crucially, in terms of their financial returns and impact targets.”
WPP chair of the joint governance committee Cllr Elwyn Williams adds:“The appointment of Schroders Capital concludes the majority of the private markets investment managers for WPP.
“Real Estate is a core asset class for the eight Welsh Constituent Authorities and Schroders Capital will help provide the investment they need to meet their local strategic asset allocations.”
