Royal London Asset Management has partnered with South Yorkshire Pension Authority to buy 21,000 acres of prime farmland across Cambridgeshire and Lincolnshire.
The £260m acquisition marks the first investment by Royal London into agriculture and natural capital.
The move is expected to provide an opportunity for the firm to become a key stakeholder in debates on issues such as food, carbon and biodiversity provenance, as well as enhancing nutritional quality.
In addition, the transaction forms a part of Royal London’s commitment to net zero goals as it will seek to reduce environmental impact via innovation, technology and the use of sustainable and regenerative farming techniques while investigating nature-based solutions.
The farmland is managed by Waldersey Farms, which has been acquired alongside tenanted relationships with other UK businesses and retains management of the majority of the land.
Mark Evans, head of property at Royal London, said: “At Royal London Asset Management Property, we are constantly seeking assets that are resilient to future uncertainties. By diversifying into this emerging institutional real asset sector, we show our commitment to investing in assets that will benefit future generations.”
Jayne Dunn, chair of South Yorkshire Pension Authority, added: “As farming moves into a new era of increased complexity, meeting the combined demands of food security, localism, biodiversity enhancement, climate change and more, we felt that the opportunity to introduce a new partner able to more actively manage the estate and fully realise its potential was in both the best interests of the holding and the longer-term interest of our scheme members.”
Royal London was advised by Addleshaw Goddard, Savills and Deloitte; South Yorkshire Pension Authority was advised by Eversheds Sutherland, PwC and Bidwells.
Photo © Waldersey Farms
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