£80m earmarked for regional investment by South Yorkshire Pension Fund

The South Yorkshire Pension Fund has allocated £80m for regional investment to support the ongoing economic growth of the region.

The local authority pension fund will work alongside the SCR JESSICA Fund, with an aim of increasing development funding for the South Yorkshire/Sheffield City Region to over £120m.

Established in 2013, the SCR JESSICA Fund has seen £40.5m invested into the region since its inception.

CBRE’s Investment Advisory team, part of CBRE Capital Advisors, has been appointed to manage the fund and will 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.

Will Church, senior director of 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.”

John Mothersole, chair of the JESSICA Investment Board, also 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.”