The council pension fund for one of London’s wealthiest boroughs plans to quadruple the amount it invests in property, and has tasked agency CBRE with helping it map out a strategy to do so.
The Royal Borough of Kensington and Chelsea Pension Fund wants to boost its allocation to UK property investments from 5% to around 20%.
The fund claims on its website to have assets of more than £800m. On that basis, its property investments could leap from £40m to more than £160m. A contract to work on the new strategy has been awarded to CBRE, which declined to comment.
In a contract award document, the pension fund said CBRE’s role will involve helping it to “maintain a direct property portfolio and provide on-going management services for the portfolio”.
That will include advising on and negotiating acquisitions and disposals; liaising with tenants; managing the properties; and advising the fund’s investment committee.
The fund’s first investment strategy statement, for 2017/2018, detailed four categories across which its assets are split – global equities, absolute return funds, private equity and property. CBRE and Kames were both named as investment managers working on its property investments.
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