CBRE’s UK property fund and Electricity Supply Pension Scheme’s (ESPS) UK portfolio are merging to create a £1.5bn fund.
The move comes after ESPS began a search for a core balanced fund to merge with.
CBRE’s property fund was valued at £655m.
The fund will also become a Property Authorised Investment Fund (PAIF).
Michael Ness, head of UK for CBRE Global Investors, said: “This merger is indicative of a theme that CBRE Global Investors are seeing across a number of our domestic and global investors – an increasing desire for scale and simplicity”.
Hannah Marshall, fund manager for the PAIF, said: “The ESPS portfolio was complementary to the existing fund and had a good performance track record. Our investors will now be able to benefit from the PAIF structure, which is more flexible and efficient.
Aon Hewitt, PWC, Eversheds and Mayer Brown acted for ESPS; BLP and Nabarro for the CBRE UK Property Fund.
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