NETHERLANDS/UK - Dutch pension fund manager TKP Investments has invested €52m in UK retail property through Standard life Investments' UK Shopping Centre Trust.
TKP's investment marked the first foreign investment in the Trust. TKP head of real estate investments Robert-Jan Tel said the investment was part of a strategic decision to allocate funds to UK retail property. "We had a key strategic requirement to access prime retail property in the UK," said Tel.
"The Trust offers assets at a relatively low risk with the potnetial for stable returns."
Launched in 2005, the SLI UK Shopping Centre Trust has grown to £1.9bn (€2.8bn).
The trust is a closed-ended Jersey Property Unit Trust providing investors with access to a sub sector where lot size continues to present a barrier to entry. In 2006 it generate an ungeared performance of 16.5% net of all fees.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.