Schroders Capital seals fifth acquisition for GMPF as investments made over 12 months hit £130m
The Schroders Capital real estate team, acting on behalf of the Greater Manchester Pension Fund (GMPF), has acquired a 59-bed, best-in-class care home in southwest London for £14.2 million.
This latest deal marks the fifth acquisition for GMPF over the past 12 months, with investments totalling £130m generating an attractive average yield based on the gross acquisition prices of over 6.0%.
The acquisitions successfully recycle proceeds from the sale of 3-8 Whitehall Place, a 95,000 sq ft office in London for £155.25 million in July 2022, which reflected a net initial yield of 3.5%. The sale of Whitehall Place and efficient redeployment has allowed GMPF to capitalise on the cyclical buying opportunity in the UK commercial real estate market, following a price correction of approximately 25% between June 2022 and June 2024.
The Schroders Capital team has acquired best-in-class real estate in higher growth markets that have repriced, providing a blend of more defensive, long dated, inflation-proof income, as well as value-add strategies to be implemented by its specialist active asset management teams in London and Manchester.
The five acquisitions are diversified across UK regions and real estate sectors such as living, industrials and offices, including:
- Murieston Crescent, Edinburgh: 120-bedroom, best-in-class Purpose-Built Student Accommodation (PBSA) asset located in one of Edinburgh’s PBSA hubs.
- Brackmills Central Industrial Estate, Northampton: 273,000 sq ft multi-let industrial asset situated in the golden triangle.
- Volkswagen Car Showroom, Brentford: 192,000 sq ft flagship UK dealership located within London’s motor mile.
- 10 Victoria Street, Bristol: Best-in-class, 47,000 sq ft office building located on Finzel’s Reach in Bristol city centre.
- Sherwood Grange Care Home, Kingston-upon-Thanes: 59-bed, best-in-class care home leased to Care UK in an affluent south London suburb.
Philip Scott, Fund Manager for GMPF at Schroders Capital, said:
“Exiting 3-8 Whitehall Place at the peak of the market in the summer of 2022 has provided a fantastic opportunity to capitalise on the cyclical buying opportunity in the UK commercial real estate sector with our reinvestment strategy. Over the past 12 months, we have deployed the sales proceeds into our key conviction sectors and significantly boosted both income and total returns from the portfolio. We have significant further funds to invest in 2025 and look forward to building on this momentum.”
Schroders Capital’s real estate business is a strategically important growth area, with the team currently managing over $27.31 billion of assets in a range of strategies across 16 markets globally. Its UK Real Estate team has a proven track-record, with over 50 years of experience and deep expertise spanning active investment and portfolio management as well as asset operations.
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Rachael Dowers, Media Relations Lead, Private Markets | +44 207 658 2086 | |
Andy Pearce, Head of Media Relations | +44 207 658 2203 |
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Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $99.3 billion (£79.3 billion; €95.9 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 31 December 2024 (including non-fee earning dry powder and in-house cross holdings)
Schroders plc
Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £778.7 billion (€941.8 billion; $975.3 billion) of assets under management at 31 December 2024. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital.
Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.
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