Brunel Pension Partnership, a Local Government Pension Scheme (LGPS) pool, has invested £340m into two long-lease property funds.
In the first two investments into its Secured Income Portfolio, the LGPS giant has committed £169m into both the M&G Secured Property Fund and the Aberdeen Standard Long Lease Property Fund.
The £30bn LGPS pool has made the investment on behalf of pension funds including Avon, Buckinghamshire, Cornwall, the Environment Agency, Gloucestershire, Devon, Dorset, Oxfordshire, Somerset and Wiltshire.
Brunel head of private markets, Richard Fanshawe, said: “The M&G and Aberdeen Standard long-lease property funds were selected for their individual merits and the strength of the overall combination. Together, they offer broad immediate diversification, strong long-term performance track records and sector-leading sustainability credentials.”
Brunel’s secured income portfolio is one of five the pool has developed in order “to meet client’s needs” and works to deliver inflation linked returns, of which “long-lease property is the cornerstone asset class of this portfolio”.
Both Aberdeen Standard Investments and M&G said they are delighted with the partnership.
M&G director of fixed income, Andrew Swan, said: “We are delighted that the Brunel Pension Partnership has chosen the M&G Secured Property Income Fund to deliver long term inflation linked income secured against high quality real estate across the UK.”