Schroders targets affordable housing with £400m mandate from Welsh pension pool

The local and impact real estate arm is part of an overall £2bn mandate awarded to Schroders by the WPP as part of its real estate investment proposition.

Schroders will develop an investment programme that uses fund investments and direct asset investments in UK impact strategies, with at least 50% of assets located in Wales.

The asset manager will also manage the UK core real estate strand, which will focus on the industrial, retail and office sectors.

Property investment firm CBRE has also been awarded a £500m mandate to establish a vehicle to invest in funds and direct assets internationally.

Elwyn Williams, chair of the joint governance committee of the WPP, said: “Real estate is a core asset class for the eight Welsh constituent authorities, and these managers will provide the investments they need to meet their local strategic asset allocations.”

Sophie van Oosterom, global head of real estate at Schroders Capital, said: “Our clients and investors are increasingly demanding more from their real estate exposure and managers. They want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value.”

Schroders Capital’s real estate team currently has £22.1bn in global assets under management.

Access Pool, a group of 11 local government pension funds, recently named Legal & General (L&G) as its social and affordable housing manager.

The pool has provided £125m in funding to L&G to invest in affordable rent and shared ownership homes in areas of “acute need and demand” across England.

Shortly afterwards, L&G more than doubled the size of its Affordable Housing Fund with a £120m investment from the Greater Manchester Pension Fund.