BtC adds £826m to property fund
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Border to Coast has said 10 of its partner funds are now invested in the pool’s UK Real Estate vehicle, bringing it to £2bn. The transition of Teesside Pension Fund’s £396m portfolio means the pool now manages 96 properties.
Border to Coast launched a property fund last October, seeded by Tyne and Wear Pension Fund, Cumbria Pension Fund and South Yorkshire Pensions Authority’s 65 properties worth £1.2bn.
Six partner funds have made their first cash subscriptions to the fund, totalling £430m, which BtC said will be deployed into high-quality real estate.
“For some, the proposition enables exposure to direct real estate for the first time,” the pool noted.
The UK Real Estate proposition provides new capabilities and access to a highly diversified investment portfolio “with the benefit of an experienced, professional internal team working solely to make a difference for the scheme”, argued BtC's head of UK real estate Alistair Smith.
Transitioning the Teesside portfolio required a “detailed and complex process” managed by the Teesside Pension Fund team, Border to Coast’s real estate team and the pool’s investment adviser and asset manager Aberdeen, Knight Frank as independent valuer, property manager Workman, law firm Burges Salmon, surveyors at Hollis and environmental consultancy Ramboll.
Cameron Murray, head of UK and European real estate at Aberdeen Investments, said: “This milestone is testament to the efficiencies of pooling and our partnership’s strengths and expertise. Together we are building a high-quality real estate portfolio at pace, bringing real diversification benefits as well as supporting the UK growth mission.”
Who carries the cost of transitioning assets to pools?
