Impact investor Bridges Fund Management has announced the successful close of Bridges Property Alternatives Fund VI with total commitments of more than £440m.
The fund raise, which was above Bridges’ £400m target, attracted strong strong demand from institutional investors in both the UK and overseas.
Investors in Fund VI include a diverse group of pension funds, insurers, family offices, and other institutions, such as Fidelity International, Border to Coast Pensions Partnership, the Environment Agency Pension Fund, University College Oxford, South Yorkshire Pensions Authority, East Riding Pension Fund, and Clwyd Pension Fund.
Fund VI will target sustainable property investments across the UK and Europe, focusing on needs-driven sectors with strong growth fundamentals such as housing, healthcare and logistics.
The fund has already completed 10 investments in Bridges’ specialist sectors, including co-living (Cornerstone & Minories, City of London), low-carbon industrial (Torque, Erdington), purpose-built elderly accommodation (Birchgrove) and specialist healthcare (Renaiss Health).
Simon Ringer, partner and head of property funds at Bridges Fund Management, said: “We are delighted to have closed Fund VI ahead of target, with strong backing from both existing and new institutional investors. Their support – especially at a time of reduced market liquidity – is testament to the strength of our impact-driven investment strategy and track record.
“Over the past 15 years, we have shown that by investing in areas where there is a favourable relationship between needs-driven occupational demand and restricted market supply, we can deliver competitive financial returns alongside positive social and environmental impact. As demand for sustainable real assets continues to increase among both occupiers and investors – driven by positive regulatory tailwinds – we see compelling opportunities ahead in our specialist niche sectors.”
Vivian Liu, private markets portfolio manager at Fidelity International, added: “Our clients are increasingly looking for access to attractive sustainable investment opportunities within private markets. Bridges’ specialist real estate strategy has a proven track record of identifying and executing property investments where sustainability can be a clear driver of value creation – so Bridges Property Alternatives Fund VI was an obvious choice for our portfolio.”
Ian Sandiford, head of alternatives at Border to Coast Pensions Partnership, said: “Building on the significant investment our partnership has made in the UK to date, our commitment to Fund VI enables us to pursue sustainable investment opportunities with attractive growth potential whilst meeting the growing need for housing and healthcare real estate, all on behalf of LGPS Partner Funds.
“It puts LGPS capital to work supporting the needs of communities and looks set to deliver clear social and economic benefits – an ambition of our UK opportunities investment strategy. We look to build strong partnerships with our managers and look forward to working closely with Bridges to continue to deliver for the LGPS.”
Scott Anderson, investment manager at Environment Agency Pension Fund, added: “Delivering best-in-class sustainability outcomes alongside strong financial returns is fundamental to EAPF’s investment approach. Bridges’ real estate funds have been a pioneer of this approach in the UK, with a proven ability to identify opportunities to decarbonise the built environment while improving outcomes for the local communities in which these buildings sit. We’re excited to be partnering with the Bridges team for a fourth investment. At this time of unprecedented environmental and nature-related challenges, the importance of expert-led sustainable investment has never been greater.”
Bridges received legal counsel on the fund formation from Osborne Clarke.
