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NILGOSC Selects M&G Real Estate for £100 Million PRS Mandate

01 December 2016

M&G

NILGOSC is pleased to announce that it has committed £100 million to M&G Real Estate’s UK residential property strategy managed by Head of Residential Investment, Alex Greaves.

NILGOSC, one of the UK’S largest local government pension schemes investing circa £6.5 billion on behalf of its members, was established by the Government in 1950. The deal is one of the biggest pension fund PRS mandates to be awarded in the UK this year.

Speaking about the investment, David Murphy, chief executive of Northern Ireland Local Government Officers Superannuation Committee, says: “NILGOSC has a significant allocation to UK property already and this further commitment to residential property is another exciting ingredient in the mix. We believe that M&G Real Estate’s fund is ideal for a long-term pension investor like ourselves and with their expertise we will benefit from steady and healthy returns.”

Lucy Williams, Business Development Director at M&G Real Estate, adds: “We are delighted to be acknowledged as trusted investors on behalf of NILGOSC. We now invest in the private rented sector on behalf of 13 UK pension funds, including 10 UK local government pension schemes, and one foreign pension scheme. Whilst foreign investors are used to investing into residential property UK schemes are increasingly aware of what residential can add to a portfolio – diversification relative to UK commercial property, favourable demand/supply dynamics, low downside volatility and growing income returns.

“Not only is NILGOSC fulfilling a fiduciary duty to its members, it is also helping to boost UK housing supply - this commitment will go a long way to provide good quality, well designed and well managed private rented sector homes.”

Alex Greaves concludes: “PRS has come a very long way in a short space of time. In three years, M&G Real Estate has taken a concept to a fully scalable strategy, marking our return to the sector with the first institutional forward funding of The Rehearsal Rooms in North Acton in 2013. During this time we have invested in or financed the construction of 2000 homes, signed the first ever investor housebuilder framework agreement of its kind with Crest Nicholson and doubled the size of our internal team to keep pace with the rapid growth of our strategy.

“As an industry, we need to ensure that standards continue to increase by building high quality, sustainable communities that are designed specifically for renters.”