Impact investor Bridges Fund Management has closed its fifth property fund at £350m, with the Church Commissioners for England among a host of new investors.
Bridges said its Property Alternatives Fund V is its largest fund raised to date. It closed £50m above its original target of £300m, on the back of “strong” demand from a range of pension funds, family offices and private investors in the UK, Europe and US.
Almost half of total commitments came from new investors including the Church Commissioners, The Dunhill Medical Trust, Enowe, Investcorp-Tages, The JW McConnell Family Foundation and Mercer Private Investment Partners VI.
Longstanding investors included Clwyd Pension Fund, East Riding Pension Fund, the Environment Agency Pension Fund, Merseyside Pension Fund and South Yorkshire Pensions Authority.
Bridges said Fund V builds on its strategy to invest in growth locations and needs-driven sectors – particularly healthcare, low carbon logistics, and lower-cost and affordable housing – where a focus on sustainable development can “achieve both attractive financial returns and positive social and environmental impacts”.
Simon Ringer, head of Bridges Property Funds, said: “Across our platform we have now completed more than 80 transactions, investing both directly and with our highly experienced joint venture partners. We are already ahead of our deployment targets for Fund V having secured 17 transactions, many of which have been completed off-market.
“By concentrating on our preferred alternative and needs-driven sectors such as low carbon logistics, healthcare and lower-cost housing, we have been able to generate consistent financial returns – typically well ahead of market benchmarks – while also achieving meaningful social and environmental impact.
“We have always believed that renewing our built environment is a critical part of the transition to a more sustainable and inclusive economy. The support for Fund V is testament to the importance real estate investors are now placing on sustainability and impact factors.”
Chris West, head of timberland, infrastructure and indirect property at Church Commissioners for England, said: “The investment with Bridges enables the Church Commissioners to partner with an experienced real estate manager with a proven track record in delivering strong performance and positive social and environmental impacts within the UK.
“Our guiding investment philosophy is respect for people and planet, and this ethos is shared by Bridges. This commitment, to a fund that has strong sustainability credentials, builds on our recent investments into green energy infrastructure projects across Europe and the US and is in line with our strategy as a long-term investor, with unique responsibilities, to support decarbonisation efforts and the transition to a net zero economy.”
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