Northern LGPS and LPPI to invest €2.4b in UK housing

Northern LGPS and Local Pensions Partnership Investments (LPPI) have acquired a 5,478-home portfolio marking the initial phase of a planned £2.1 bn (€2.44 bn) investment in the UK housing market.

Housing

The cornerstone of this initiative is the completion of the acquisition of PRS Holdco, the operating arm of PRS REIT. This strategic move brings PRS REIT's entire portfolio of single-family homes, spanning 71 sites across England, Scotland, and Wales, under the joint ownership of Northern LGPS and LPPI. The initial transaction is valued at £1.1 bn (€1.28 bn).
Looking ahead, the partnership has committed an additional £1 bn (€1.16 bn), earmarked for the expansion of the portfolio by more than 15,000 homes over the next decade. 
A key element of this new venture will be the establishment of a dedicated property management platform. 
Cllr Eleanor Wills, chair of the Northern LGPS, said: “This partnership demonstrates what we can achieve when pension funds work together at scale. I am proud that Northern LGPS is supporting the government’s plan to provide much-needed affordable homes across the country for hardworking families, including right here in the North of England, while securing the pensions of our members.”
Louise Warden, investment director at Local Pensions Partnership Investments, added: “By working together with Northern, we’ve been able to unlock an investment opportunity of real scale. The undersupply of quality rental properties in the UK is well documented. We want to help tackle this issue while accessing an asset class that offers our members exactly what they need. Our plans to scale the portfolio significantly underline our confidence in this strategy and commitment to long-term investment in UK housing."
Northern LGPS represents the Greater Manchester, Merseyside and West Yorkshire Local Government Pension Scheme funds. LPPI manages assets on behalf of Lancashire County Pension Fund, the London Pensions Fund Authority and the Royal County of Berkshire Pension Fund.