The Shipbuilding Industries Pension Scheme (Sips), a centralised industry pension plan in the UK, is to invest £125 million (€163 million) in a property fund managed by First Property Group.
First Property Group, which is listed on London’s AIM market for smaller companies, is an existing provider to Sips and will manage the money for an initial term of ten years.
The new fund will be unleveraged and will target a net total return of 7% per annum or more from investments in UK property.
First Property says the investment remit is broad, encompassing both investment and development properties across all sectors, including offices, retail, industrial and residential. First
The manager will earn annual fees from the new fund calculated by reference to the value of the properties under management.
Ben Habib, chief executive of First Property Group, says the broad mandate means investments can be tailored to prevailing market conditions and to deploy capital where it is likely to earn the highest returns.
Sips has £1.5 billion of total assets under management and is advised by Hymans Robertson.
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