CBRE Investment Management’s UK Affordable Housing Fund Secures New LGPS Investors
February 22, 2023
CBRE Investment Management (“CBRE IM”) has secured two new LGPS investors for its UK Affordable Housing Fund (“AHF”). Tyne and Wear Pension Fund and Scottish Borders Council Pension Fund bring the total number of LGPS subscribers to nine, with 23 investors overall and total equity commitments of over £500m.
AHF invests in social and affordable rented housing and affordable-ownership properties delivering measurable social outcomes. It was one of the first UK unlisted funds to bring institutional client capital into affordable housing to deliver social impact. The Fund has a pipeline of c. £400m of schemes both in development and completed. These are anticipated to provide in excess 2,098 homes, potentially housing in excess of 5,600 people1.
To date, AHF has invested institutional capital for the provision of affordable homes in some of the most deprived areas of the UK, helping drive economic renewal and the levelling up agenda with over half the fund invested in projects in some of the most deprived areas in the UK and affordable to tenants in receipt of housing benefit.
Andrew Davey, Head of Liability Aware Strategies UK and Fund Manager for AHF at CBRE Investment Management, said: “AHF offers investors the opportunity to access an attractive risk adjusted return whilst achieving their impact goals. Independently audited performance against the funds impact objectives is critical and provides the bedrock of our investment process. Transparency and proven track record of performance against this framework for our investors has been key to the funds’ success thus far.”
Since its inception, AHF has partnered with The Good Economy (TGE) to implement an impact framework to measure and manage social impact, including wider ESG performance, providing accountability and transparency. The impact framework continues to evolve over time, providing the foundation for every acquisition and a benchmark for all fund-level decisions whilst providing investors with an independent annual audit by TGE, providing transparency and avoiding impact or green-washing.
1 Includes pipeline assets.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $143.9 billion in assets under management* as of September 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
CBRE UK Affordable Housing Fund invests in assets that may at times be hard to sell. This means that there may be occasions when you experience a delay or receive less than you might otherwise expect when selling your investment. For more information on risks, see the Prospectus.
This material may not be distributed in any jurisdiction in which it is illegal to do so. CBRE UK Affordable Housing Fund is authorised by the Financial Conduct Authority (FCA). This Fund is for professional or qualifying investors who are eligible to invest in a Qualifying Investor Scheme (QIS) within the meaning of the FCA Rules only. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. It is not available to ordinary retail investors. CBRE Global Investors (UK Funds) Limited obtained its Alternative Investment Fund Managers Directive (AIFMD) licence from the FCA on 15 July 2014 and is the alternative investment fund manager (AIFM) for the CBRE UK Affordable Housing Fund.
The CBRE UK Affordable Housing Feeder Fund is a Feeder fund for the CBRE UK Affordable Housing Fund and it is also authorised by the FCA. This Unit Trust Feeder is for professional or qualifying investors who are eligible to invest in a QIS within the meaning of the FCA Rules only.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.