GMPF and LPFA invest £45m in rail project
Greater Manchester Pension Fund (GMPF) and London Pensions Fund Authority (LPFA) have jointly signed a deal to fund a new fleet of trains for Abellio East Anglia.
Through its joint investment vehicle, GMPF & LPFA Infrastructure LLP (GLIL), the funds have invested £45m for the purchase of 58 trains and 387 carriages.
The investment has been made alongside SL Capital and RockRail and is expected to increase rail capacity for Norfolk and Suffolk by as much as 78%.
GMPF chair Kieran Quinn said GLIL's joint ventures allow for more tailored risk management.
He said: "This investment continues GLIL's progress and success in acquiring highly prized assets at attractive rates of return while also supporting major UK infrastructure projects.
"Through GLIL, we are able to tailor our investments to better control risks and provide a return stream well suited to meeting our pension liabilities. We're excited by the pipeline of potential investments as we look forward to working on more opportunities and deploying our remaining capital."
LPFA chairman Sir Merrick Cockell added the investment would generate good returns for the funds.
"We're delighted that our infrastructure partnership with Greater Manchester has once again delivered on our stated goal of hands-on direct investment and successful collaboration," he said. "This investment will give us the strong levels of return we seek as well as provide badly needed and upgraded trains for the region."
GLIL was set up last year to enable the two funds to combine their resources and make up to £500m of investments in infrastructure.
In March, the investment vehicle acquired a stake in a 350MW onshore windfarm in Scotland.
Earlier this week, chancellor Philip Hammond indicated the government would increase investment in infrastructure. The Local Government Association's head of pensions Jeff Houston said it was "good news" for local government pension schemes (LGPS) looking to make joint investments.
More on Investment
Government infrastructure bank to partner with pension funds to support investment
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
UPDATED: RPI to be reformed in 2030, but no compensation for gilt holders
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Governance Watch - December 2020: No show is no big deal, argues Foxtons
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
Market Movers Blog: Sunak to pledge £4.3bn to tackle joblessness
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....
Industry Voice: Five reasons why investors should now consider small-caps
Attractive valuations and prospects for economic recovery support small-caps
