Research - DECEMBER 15, 2021

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U.K. pension schemes are turning toward vehicles with a social benefit

by Kali Persall

A new report published by Alpha Real Capital found that over the next two years, 58 percent of U.K. pension schemes — which collectively manage some £143.6 billion ($190 billion) of assets — believe institutional investors will increase their allocation to real estate investment vehicles offering a social benefit.

COVID-19 was a key driver behind the growing emphasis on social real estate, according to the report. More than half of the U.K. pensions schemes surveyed — 66 percent — believe the pandemic has increased the level of importance of social benefits on investment decision-making and fund allocation going forward.

“The pandemic has highlighted the diversification benefits of social real estate, with underlying revenues proving to be resilient compared to the mainstream commercial real estate sectors,” said Adrian D’Enrico, head of social real estate at Alpha Real Capital. “This is a view that 91 percent of pension schemes we interviewed said the

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