Schroders Capital, the private markets arm of Schroders Group, has been awarded a £2 billion ($2.5 billion) real estate mandate by the Wales Pension Partnership (WPP). This collaboration includes eight LGPS funds in Wales and is one of eight Local Government Pension pools.
This latest mandate builds on the £500 million ($643 million) global private equity mandate awarded to Schroders Capital by WPP last year. Under the new mandate, Schroders Capital’s real estate team will allocate up to £400 million ($514 million) to positive impact and local investments across Wales. This includes initiatives such as local employment opportunities, affordable housing, and healthcare. The mandate will also focus on UK-wide impact investments that align with WPP’s net zero goals.
The remainder of the funds will be directed toward UK core real estate investments, including industrial, retail, and office sectors, as well as specialist areas like hotels, self-storage, and student accommodation.
With £22.1 billion ($28.4 billion) in global assets under management, Schroders Capital’s Real Estate team aims to offer customised investment and asset management solutions, emphasizing long-term sustainable performance and operational excellence.
Sophie van Oosterom, Global Head of Real Estate, Schroders Capital said, “We are very pleased to further strengthen our partnership with WPP. Our clients and investors are increasingly demanding more from their real estate exposure and managers – they want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value. We are committed and well positioned to meeting these advanced challenges and our partnership with WPP is testament to the strength of our proposition.”
Paul Myles, Head of LGPS Business Development, Schroders said, “We look forward to working with WPP on these second private markets mandate, further building on our partnership. We are committed to delivering relevant and comprehensive investment solutions which meet the increasingly complex needs of our sophisticated clients, both from a philosophical investment perspective but, crucially, in terms of their financial returns and impact targets.”
Cllr Elwyn Williams, Chair of the Joint Governance Committee, WPP said, “The appointment of Schroders Capital concludes the majority of the private markets investment managers for WPP. Real Estate is a core asset class for the eight Welsh Constituent Authorities and Schroders Capital will help provide the investment they need to meet their local strategic asset allocations.”