15th May 2014

Ediston to invest an initial £50 million in west of Scotland property for Strathclyde Pension Fund

One of the UK’s biggest pension funds has appointed Ediston Real Estate to spearhead a new fund focused on commercial property in the west of Scotland.

Strathclyde Pension Fund, administered by Glasgow City Council, has created the Clydebuilt Fund to seek opportunities for investing in assets under £10 million across the former Strathclyde region.

Ediston will be seeking to identify assets which it can intensively manage in order to create additional value, improve yields and maximise returns.
While delivering returns will be the main focus of the Clydebuilt Fund, it is anticipated this asset management activity can generate additional spin-off benefits including regeneration of property in disadvantaged areas and job creation.

Danny O’Neill, founding director of Ediston said: “The Clydebuilt Fund represents a new and innovative approach for the Strathclyde Pension Fund and one which could signal the way forward for other institutions in the future.

“As a more boutique fund manager, we are looking to invest in property which is out-of-favour with large institutional investors but which we can manage, improve and add value to create a better quality product.

“With the knowledge and insight to identify opportunities and time and resources to manage these assets intensively we believe we can generate superior returns.

“We would like to have the whole fund fully invested by the end of the year.”

The Clydebuilt Fund is part of Strathclyde Pension Fund’s New Opportunities portfolio, which has a remit to invest, on an opportunistic basis, which more established structures would not normally target.

Convenor of Strathclyde Pension Fund and Glasgow City Treasurer Cllr Paul Rooney said: “There are good opportunities in Glasgow and across Strathclyde; we’re sure of that – and I’m looking forward to our partners bringing forward investments.

“We always look to deliver for our members who are saving for their futures – but this fund can also provide a real boost for the local economy.
“Like our members, I’m positive about seeing more of their money being invested in the communities in which they work and live – supporting native businesses and jobs.”

The Clydebuilt Fund has been structured to be open for seven years, with £50 million to be invested. An additional £25 million of debt will supplement investment in the Fund to £75 million. It is anticipated it will invest in up to eight to ten assets, with the option of extending the fund further in the future should it prove successful.

The £13.7 billion Strathclyde Pension Fund has traditionally focused on investments of over £10 million across the whole of the UK.