Two UK local authority pension funds are investing in 鈥檚 latest fund targeting secondary property, hoping to capitalise on uncertainty surrounding the Brexit vote.
Leicestershire County Council Pension Fund and Nottinghamshire County Council Pension Fund are committing a combined 拢55m (鈧�62.6m) to the Active Value Property Fund II.
Both pension schemes, which are part of the Local Government Pension Scheme (LGPS) Central investment pool, have said post-referendum volatility could create investment opportunities.
Colin Pratt, investments manager of the Leicestershire County Council Pension Fund, said: 鈥淯K secondary property offers an attractive and stable yield, and following the EU referendum vote we believe that the uncertainty will throw up opportunities within the property market.
Simon Cunnington, senior accountant at Nottinghamshire County Council Pension Fund, said: 鈥淭he result of the EU Referendum is leading to high levels of volatility in the UK commercial property market.
鈥淭his offers opportunities for active investors to acquire good-quality secondary assets at attractive prices.鈥�
The two pension schemes join West Midlands Penson Fund 鈥� another member of the Central pool 鈥� which for the closed-ended fund earlier this year.
The fund, a successor to Kames Capital鈥檚 拢275m Active Value Property Trust, is managed by Philip Bach and is targeting a blended initial yield of 7-8% per annum on assets purchased.
It will target good-quality assets between 拢5m and 拢15m.
