The London Fund welcomes Kingston and Sutton as a new investor and closes at £250 million

16 January 2024

Royal Borough of Kingston upon Thames Pension Fund and London Borough of Sutton Pension Funds have committed £55 million to The London Fund, which aims to generate positive social and environmental outcomes for Londoners.

London LGPS CIV Limited (“London CIV”) and Local Pensions Partnership Investments Limited (“LPPI”) today announce that the combined Royal Borough of Kingston upon Thames Pension Fund and London Borough of Sutton Pension Funds (“Kingston and Sutton”) have committed £55 million to The London Fund (“the Fund”), which aims to generate positive social and environmental outcomes for Londoners. The Fund closed to new commitments on 31 December 2023 with total fund assets of £250 million.

The London Fund’s investors also include the London Pensions Fund Authority and the Haringey Pension Fund run by the London Borough of Haringey Council.

Andrien Meyers, Head of Pensions and Investments for the London Borough of Sutton and Royal Borough of Kingston upon Thames, said: “Through this investment in The London Fund, we have shown that the Kingston and Sutton Pension Fund is committed to investing responsibly, while having a positive impact on the lives of Londoners. We look forward to working closely with London CIV and Local Pensions Partnership Investments to ensure that this investment is a success for our stakeholders.”

Dean Bowden, CEO, London CIV, said: “We’re delighted Kingston and Sutton’s LGPS are the latest to invest in The London Fund. Our purpose at London CIV is to deliver sustainable prosperity for our communities. The London Fund is one of the ways we achieve just this – offering our partner funds opportunities to invest in a wider range of infrastructure opportunities, including regeneration, while still aiming for sustainable, long-term risk-adjusted returns for LGPS members.”

Chris Rule, CEO, Local Pensions Partnership Investments, said: “The London Fund has been a role model partnership that combines LPPI’s and London CIV’s expertise, creating the scale and efficiencies that prove the value of LGPS pools. LPPI is grateful for the opportunity to collaborate with London CIV and London pension funds, investing together in London real estate, infrastructure and community regeneration projects.”

Since the Fund launched in December 2020, it has invested a total of £87.9 million in the following assets

Delancey and Oxford Residential’s DOOR SLP

Delancey and Oxford Residential’s DOOR SLP, a dedicated residential investment vehicle, which is part owner of Get Living, the UK’s leading build-to-rent operator of large-scale residential neighbourhoods. DOOR SLP facilitates The London Fund’s investment in housing developments in areas such as East Village, Lewisham and Elephant and Castle. This includes almost 3,918 homes under management, 1,677 homes under construction, a further 4,660 in the secured pipeline, with an overall target of 12,000 homes within the next five years. Get Living’s institutional ownership, provision of long-term tenancies and resident-only break clauses provide residents with security of tenure.

Yoo Capital Fund II LP

Yoo Capital Fund II LP, focussed on redeveloping and repositioning existing assets predominantly in the Greater London area. Its primary focus will be on sectors which Yoo Capital believes to be either undersupplied or mispriced, such as life sciences, healthcare and creative industries. The Yoo fund has acquired two seed assets: Shepherd’s Bush Market, and Saville Theatre, Shaftesbury Avenue.

London-based VIRTUS

London-based VIRTUS, one of the leading and fastest growing hyperscale data centre platforms in London, Europe’s largest data centre market. VIRTUS is an award-winning, pure-play data centre owner-operator, providing state-of-the-art critical digital infrastructure which provides vital connectivity and access to online services for residents and businesses in London and beyond. VIRTUS supports London’s digital ecosystem through a data centre platform which matches its electricity consumption to 100% renewable energy procurement alongside its wider commitment to net zero by 2030 and efficient water and energy usage.

EDGE London Bridge

EDGE London Bridge project, a 275,000+ sq. ft., 28-floor, NIA best-in-class, sustainable office tower in St Thomas Street, London Bridge. The office building will provide a unique offering in London for >2000 companies that have committed to net zero carbon by 2050. Due to be completed in 2026 the building targets regulated energy consumption of <23 kWh/sqm to align with the RIBA 2030 Climate Challenge operational intensity targets for new build offices. Through its innovative design, the building will emit less than half the amount of carbon compared to similar towers and generate some of its own renewable energy onsite. Underfloor air supply in combination with natural ventilation will provide optimal air quality, which, together with natural light from the floor to ceiling windows and radiant cooling, will provide an engaging and healthy environment. Biophilic design, planted balconies and a large, shared roof terrace will further enhance the occupier experience

The Fund aims to create a double bottom line by providing investors with sustainable long-term risk-adjusted returns and generating positive social and environmental outcomes for Londoners. The Fund focusses on investments in the City of London, the 32 London Boroughs and their immediate surrounds, in assets such as residential property – specifically build-to-rent – and affordable housing, community regeneration projects, and infrastructure including digital infrastructure and clean energy.

London CIV is the Alternative Investment Fund Manager and Local Pensions Partnership Investments is the portfolio manager. By pooling their resources and networks, London CIV and Local Pensions Partnership Investments expect to have access to a greater range of investment opportunities for The London Fund than would be available to either entity acting alone.

Source: Local Pensions Partnership