Cheyne Capital secures two new pension funds for Impact Real Estate arm

The Greater Manchester Pension Fund and South Yorkshire Pensions Authority are the latest local government pension schemes committed to Cheyne Capital’s Impact Real Estate strategy.

Cheyne Impact Real Estate specialises in building housing both for general needs and specialist purposes including a significant proportion of the homes being made available to lower-income and key worker residents at significant discounts — all homes have capped rental increases to offer longer-term certainty for residents.

The properties are developed on a tenure blind basis ensuring identical levels of specification and service for all tenants.

According to Cheyne, the cross-subsidy approach used allows for discounted market rent to be more “meaningful” and removes the need for it to be increased at the full rate of inflation when the sources funding it may be increasing at sub-inflationary levels.

Stuart Fiertz, co-founder and head of responsible investment at Cheyne, said: “We are delighted that the solution we are offering both to tenants and to investors has resonated with Greater Manchester Pension Fund and South Yorkshire Pensions Authority.

“Thanks to their support, we will now be able to expand our portfolio elsewhere in the UK and we are excited at the prospect of announcing some of the future projects in our pipeline.”

Gerald Cooney, chair at Greater Manchester Pension Fund, commented: “Our impact portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return.

“I am proud that we are supporting Cheyne and its effort to provide affordable homes for key workers in Greater Manchester.”

George Graham, director at South Yorkshire Pensions Authority, added: “It’s a pleasure to have invested our members’ capital with Cheyne, helping to provide more affordable and specialist housing in the UK to those who need it the most in the current difficult economic climate.”

Leave a comment