Torsten Bell: This is exactly the sort of collaboration between pools the government is aiming to unlock through the introduction of the Pension Schemes Bill
Northern LGPS and Local Pensions Partnership Investments (LPPI) have completed the acquisition of PRS Holdco, the operating arm of PRS REIT, bringing its entire portfolio of 5,478 single-family homes under joint ownership.
The two Local Government Pension Scheme (LGPS) pools said this £1.1bn transaction marked a "significant step" in delivering long-term, sustainable housing investment for pension fund members.
The homes acquired span 71 sites across England, Scotland and Wales.
The two pools said they plan to deploy an additional £1bn to expand the portfolio by more than 15,000 homes over the next ten years – a move it said would help address the UK's chronic undersupply of quality rental housing while generating stable returns.
As part of the deal, the joint venture between the two pools will establish a dedicated property management platform to directly manage the portfolio, promoting strong operational oversight and tenant experience.
Northern LGPS chair Eleanor Wills said: "This partnership demonstrates what we can achieve when pension funds work together at scale. I am proud that Northern LGPS is supporting the government's plan to provide much-needed affordable homes across the country for hardworking families, including right here in the North of England, while securing the pensions of our members."
LPPI investment director Louise Warden added: "This joint venture, delivered through our LPPI Real Estate Fund, is a great example of the positive impact pension capital can have in the communities of pension fund members, and of the power of cross-pool collaboration. By working together with Northern, we've been able to unlock an investment opportunity of real scale.
"The undersupply of quality rental properties in the UK is well documented. We want to help tackle this issue while accessing an asset class that offers our members exactly what they need. Our plans to scale the portfolio significantly underline our confidence in this strategy and commitment to long-term investment in UK housing."
Supporting UK investment
Minister for local government Alison McGovern added: "This investment demonstrates the vital role LGPS pools play through investing at scale in national priorities while creating value for the scheme."
Minister for pensions Torsten Bell noted: "I am delighted to see Northern LGPS and LPPI working together. The reforms this government is introducing through the Pension Schemes Bill will help unlock exactly this sort of collaboration between pools and help support investment and growth to all parts of the UK."
Northern LGPS represents the Greater Manchester, Merseyside and West Yorkshire LGPS funds. LPPI manages assets on behalf of Lancashire County Pension Fund, the London Pensions Fund Authority and Royal County of Berkshire Pension Fund.
