The Merseyside and Tyne & Wear pension funds have joined as limited partners in the final investment round of Hearthstone Investment Management's ten-year closed-ended private equity fund.
The Hearthstone Residential Fund 1 (HRF1) now includes seven funds within the Local Government Pension Scheme (LGPS). Just over £200m has been invested via the fund which has now announced its final close just above its target.
The other investors are the Derbyshire, Nottinghamshire, Staffordshire, Teesside and West Midlands LGPS funds. The fund completed its first close in December 2017 with assets of just over £100m.
Merseyside Pension Fund chairman, councillor Paul Doughty, said HRF1 had "consistently delivered on its investment strategy".
The fund focuses on new-build housing and low-rise blocks of flats across the UK in the private-rented sector.
"Its objective is to build and manage to a high standard a portfolio of mainstream rental properties with the interests of tenants, their communities and institutional investors aligned," Doughty continued. "This is consistent with our objective to support needed housing development in the region."
Hearthstone partner and director of investor relations Cristoforo Rocco di Torrepadula said he was "delighted" to close the fund on schedule.
He added: "Exceeding our target fund size is a powerful affirmation of our strategy and ability to source, acquire and manage desirable properties in locations that offer sustainable employment, social and community infrastructure and that combine the aspirations of tenants with the stable income returns expected by our institutional investors."
The majority of the LGPS funds are part of the LGPS Central pool, although Teesside is a partner fund of Border to Coast, and Merseyside of Northern LGPS, where Doughty is also chairman.
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