The Pensions Infrastructure Platform (PIP) will acquire a portfolio of interests in ten UK public-private projects for just over £400m after reaching an agreement with Aberdeen UK Infrastructure Partners.
It made the acquisition through its PIP multi-strategy infrastructure fund, which targets infrastructure and is open to all schemes.
The platform will manage the interests directly including hospitals, highways operations and maintenance contracts, energy from waste projects and social housing.
This latest deal means PIP has successfully completed six transactions during the last 18 months for 15 underlying infrastructure assets/portfolios.
Furthermore PIP's initial funding objective of £600m has been exceeded by securing almost £750m of investment from seven pension schemes.
Over the last 18 months, PIP has acquired two infrastructure debt portfolios, a portfolio of 31 onshore wind turbines and a portfolio of six solar energy parks.
It also took a stake in a ferry company and ten social infrastructure assets, bringing all of them into the direct ownership of UK pension schemes.
Chief executive Mike Weston explained the latest transaction is a watershed for the platform.
"This transaction is a milestone for PIP, taking us close to £750m of assets under management just 18 months after the launch of our first fund. It demonstrates that it is possible for a group of UK pension schemes to collaborate to make long-term investments in infrastructure," he said.
"Our buy-and-hold investment strategy, together with our cost efficient and responsible approach to asset management, ensures that maximum value is delivered to pension scheme investors and their members. As PIP continues to grow even more benefits will be secured for them."
Claudia Chapman sets out why schemes should look at expand their stewardship reporting and learn from best practice.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
PensionBee is planning to roll out its fossil fuel-free fund by the end of this year after receiving £31m in fund commitments from customers in under a week.
Two-thirds of UK fund managers are reducing investments in companies that fail on diversity and inclusion scores, according to a survey by Edelman.
Brunel Pension Partnership has launched two investment vehicles to target infrastructure assets that meet Paris Agreement objectives for its partner funds.