PGIM Real Estate has been awarded a 拢265m mandate to develop and manage a UK real estate portfolio for the Co-operative鈥檚 pension scheme.
PACE, the largest of the Co-op鈥檚 pension schemes with 90,000 defined benefit members, has 拢11bn in assets under management.
PGIM Real Estate will seek long-term, inflation linked returns through investments in UK commercial and residential properties, including leisure, social housing, care homes and car parks.
Harry Baines, chair of PACE Trustees, said the pension scheme was exploring 鈥渁lternative opportunities to capture inflation-linked returns鈥�.
鈥淧GIM Real Estate demonstrated both its credentials and experience in managing a range of property solutions to deliver this,鈥� he said.
PGIM Real Estate said its UK pension fund client base has grown steadily since 2010. As of 30 September, it manages 拢1.1bn in UK real estate for its UK pension scheme clients.
鈥淲e are pleased to partner with PACE to help secure financial security for its members, and appreciate its confidence in our ability to manage liability matched strategies built over several years of working with UK pension schemes,鈥� said Andrew Macland, head of UK for PGIM Real Estate.
