April 10, 2018
Three further pension schemes have committed capital to the Residential Land Partnership (RLP), managed by Schroder Real Estate in association with Palmer Capital. Capital commitments from five UK local authority and corporate pension schemes now total £43 million since first closing in November 2017. Further interest in the fund, which will be capped at £125 million, has been expressed by other institutions.
RLP provides investors with a unique opportunity to address the undersupply of new housing across the UK while generating the potential for strong returns through the acquisition and transformation of sites for residential development. To date, two investments have been secured for a total of £16.5 million, in Shepperton, South West London and Kings Langley in Hertfordshire. Two further sites are under offer, totalling around £12 million of equity, allowing investors to get capital deployed quickly to the strategy.
Graeme Rutter, Head of Schroder Real Estate Capital Partners, said:
“We are delighted to welcome further pension funds to RLP. In the short period since the fund’s launch, our partners Palmer Capital have demonstrated their ability to access attractive opportunities which meet our clients’ target returns. RLP also goes some way towards meeting the acute shortage of new residential housing in the UK.”
Alex Price, Chief Executive of Palmer Capital, said:
“We are delighted that the partnership between ourselves and Schroder Real Estate continues to grow, allowing us to undertake some exceptional land and planning opportunities we are sourcing via our backed property companies.”
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