Border to Coast UK real estate fund reaches €2b in AUM

The Border to Coast UK Real Estate Fund has grown to £2 bn (€2.3 bn) in assets under management, less than a year after its launch in October 2024. 

South Yorkshire, Sheffield

This expansion is due to the increasing participation of local government pension scheme (LGPS) Partner Funds, with ten funds now invested in the proposition.
Initially launched with 65 properties from three Partner Funds, the fund's portfolio has expanded to 96 properties following the addition of Teesside Pension Fund's £396 mln (€453 mln) real estate assets. 
Furthermore, six additional Partner Funds have committed £430 mln (€492 mln) in new capital, which will be strategically invested in high-quality UK real estate. This allows more Partner Funds to access diversified investment opportunities, with some gaining exposure to direct real estate for the first time.
The combined influx of £826 mln (€946 mln) in assets and new capital has propelled the fund to its current £2 bn valuation.
Alistair Smith, Border to Coast head of UK Real Estate, said: “The UK Real Estate proposition is a collective endeavour and a shining example of how pooling can benefit LGPS funds. It provides new capabilities and access to a highly diversified investment portfolio with the benefit of an experienced, professional internal team working solely to make a difference for the scheme.”
Cameron Murray, head of UK and European Real Estate at Aberdeen Investments, added: “This milestone is testament to the efficiencies of pooling and our partnership’s strengths and expertise. Together we are building a high-quality real estate portfolio at pace, bringing real diversification benefits as well as supporting the UK growth mission.  With an exciting pipeline of opportunities, we are incredibly proud of what we have achieved together.”
Key partners for the integration of the Teesside real estate portfolio included Aberdeen, Knight Frank, Workman, Burges Salmon, Hollis and Ramboll.