London CIV (LCIV), Local Pensions Partnership and the London Pensions Fund Authority (LPFA) have teamed up to launch a fund aimed at investing in developing housing and infrastructure in London.
The fund will concentrate on portfolio investment in the City of London, the capital’s 32 boroughs and their immediate surrounds, in assets such as residential property – specifically build-to-rent – and affordable housing, community regeneration projects and infrastructure, including digital infrastructure and clean energy.
Each of these assets will be selected to provide sustainable, long-term and risk-adjusted value to the pension scheme members, while creating a “double bottom line” by making a positive contribution to social and environmental issues in the area.
The fund, which will have a closed-ended structure, will be managed in partnership between LPP Investments and LCIV.
By pooling their resources, LPPI and LCIV expect to have access to a greater range of investment opportunities for the London Fund than would be available to either entity acting alone.
A spokesperson for the newly-created fund said that by collaborating with other London-based institutions, the London fund is expected to benefit from increased scale. The spokesperson said: “We are delighted to be able to develop a project that will provide attractive returns for our members while helping us support communities in London.”