The Local Pensions Partnership, the asset pool created by the London Pension Fund Authority (LPFA) and the Lancashire County Pension Fund (LCPF), has created a £1.2 billion property investment pool.
The property pool combines the two funds’ existing property holdings with the addition of specialist income and value added strategies. Knight Frank Investment Management (KFIM) has been appointed to manage £850 million of the property pool, using opportunities in UK commercial and residential property. LPFA has allocated £300 million here, which will be added to LCPF’s existing £500 million allocation with KFIM.
LPP managing director (investments) and co-chief investment officer, Chris Rule, said: “This allocation extends further the strategic partnership between LCPF and LPFA through the Local Pensions Partnership. We’re pleased to not only be talking about collaboration and pooling across the LGPS, but actively engaging in it.” KFIM head of fund management, John Styles, said: “We look forward to building on our track record of exceeding LCPF’s target returns by investment and active asset management of core UK properties in the LPP property pool. We are also excited at the prospect of partnering with developers and managers to access specialist sectors and value add opportunities for the fund. The new LPP property pool allocation will take KFIM’s assets under management to in excess of £1.75 billion.”