Monday, March 18, 2019

News: Pension fund to invest in South Yorkshire

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The South Yorkshire Pension Fund (SYPF) has allocated £80m for regional investment in South Yorkshire.

This funding line will support the ongoing economic growth of the region and will work alongside the SCR JESSICA Fund, increasing regional development funding for the Sheffield city region to over £120m.

Managed by experts at CBRE, JESSICA is a financial engineering mechanism used to create a revolving fund that could be used for regeneration projects such as the creation of new commercial floorspace, brownfield redevelopment or investment in infrastructure.

CBRE's Investment Advisory team, part of CBRE Capital Advisors, has now been appointed to manage the pension fund and will originate and advise on all investments, expanding their existing remit managing the SCR Jessica fund.

The two funds will operate independently from each other, with the South Yorkshire Pension Fund having complete autonomy over investment decisions. However, opportunities to make strategic joint investments will be a focus and will enable investments into larger scale projects as well as into alternative sectors, including residential and leisure.

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Will Church, senior director at CBRE Capital Advisors, said: "We are delighted to have been appointed to manage The South Yorkshire Pension Fund’s regional investment allocation. This will complement our ongoing work with the SCR Jessica Fund and enable us to develop a strategic investment plan that will maximise socio-economic growth in the wider region."

Councillor Sue Ellis, Chair of the South Yorkshire Pensions Authority, added: "We are pleased to be working with CBRE to achieve financial returns for our scheme members while at the same time supporting delivery of investment in communities across South Yorkshire. This is an example of an area where we can achieve the commercial return we need to pay pensions at the same time as ensuring the delivery of schemes which will improve the long term prospects of the local economy."

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The JESSICA fund supports job-creating commercial property schemes through grants and loans. It has been used to kickstart Rotherham developments on the Advanced Manufacturing Park (AMP) and at Beighton Link.

John Mothersole, Chair of the JESSICA Investment Board, said: "The commitment by the SYPA to invest alongside, albeit independently from, the SCR JESSICA Fund in the South Yorkshire economy is really welcome. Not only does it demonstrate a ringing endorsement of the work undertaken by the SCR JESSICA to date it also creates more opportunity for investment in the wider South Yorkshire property market, including areas such as residential, where the JESSICA has some limitations. Working with CBRE I am sure both Funds will be able to stimulate further economic growth in our region."

CBRE website

Images: JF Finnegan

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