GMPF continues buying spree with £14.2m care home deal

The Schroders Capital real estate team, acting on behalf of the Greater Manchester Pension Fund, has acquired a 59-bed care home in south west London for £14.2m. The deal marks the fifth acquisition for GMPF in 12 months, with investments totalling £130m, generating an average yield based on the gross acquisition prices of more than 6%.   The acquisitions successfully recycle proceeds from the sale of 3-8 Whitehall Place, a 95,000 sq ft office in London for £155.25m in July 2022, which reflected a net initial yield of 3.5%. The sale of Whitehall Place has allowed GMPF to capitalise on the cyclical buying opportunity in the UK commercial real estate market, following a price correction of approximately 25% between June 2022 and June 2024.  Philip Scott, fund manager for GMPF at Schroders Capital, said: “Exiting 3-8 Whitehall Place at the peak of the market in the summer of 2022 has provided a fantastic opportunity to capitalise on the cyclical buying opportunity in the UK commercial real estate sector with our reinvestment strategy. “Over the past 12 months, we have deployed the sales proceeds into our key conviction sectors and significantly boosted both income and total returns from the portfolio. We have significant further funds to invest in 2025 and look forward to building on this momentum.”