Lloyds pension fund backs SWIP vehicle

A Lloyds Banking Group pension fund is one of the three cornerstone investors in the Pan-European Urban Retail Fund (PURetail), launched last month by Lloyds subsidiary Scottish Widows Investment Partnerships with €100m.

Robert Matthews, head of international property at SWIP, said the other two investors in the retail vehicle are a multi manager and a continental corporate pension fund.

PURetail, which is jointly managed by Cushman & Wakefield Investors, has the potential for two sub funds: continental Europe and the UK. “But our first-close investors didn’t want UK exposure,” said Matthews.

He added that the fund is  in due diligence on its first purchase, in Germany, and the team is meeting more potential investors in northern Europe for a second closing.

PURetail is SWIP’s first property product since 2004, when the business launched the European Balanced Property Fund and the Airport Industrial PUT. Matthews’ team runs the 230m (gross) European balanced fund, which “is starting to look at its exit strategy”, he said.