Royal London Asset Management (RLAM) has acquired 21,000 acres of prime farmland across Cambridgeshire and Lincolnshire in a £260m joint venture with South Yorkshire Pensions Authority (SYPA).
The investment is the first Royal London Asset Management has made into the agriculture and natural capital sector.
The company said the land comprises a diverse portfolio and offers the potential to increase agricultural output and productivity while seeking to employ new environmental strategies.
As part of the deal, the joint venture partners have also acquired the farm’s management company Waldersey Farms alongside tenanted relationships with other UK businesses.
Mark Evans, head of property at Royal London Asset Management, said: “Working alongside South Yorkshire Pension Authority to invest into the largest farming transaction by capital value in the UK has provided an exceptional opportunity to launch our natural capital strategy. It will allow us to explore market leading sustainable practices on a predominantly directly controlled estate and at meaningful scale, whilst aligning with our long-term focus as a mutual business.
“The balance between human and environmental health derived from agriculture will become increasingly relevant and the opportunity to be active investors in this partnership enables us to have more influence over the operations and better engagement with communities, while testing alternative routes to add value.
“At Royal London Asset Management Property, we are constantly seeking assets that are resilient to future uncertainties. By diversifying into this emerging institutional real asset sector, we show our commitment to investing in assets that will benefit future generations. Royal London Asset Management is passionate about responsible investment. We’re supporting our group purpose of ‘Protecting today, investing in tomorrow. Together we are mutually responsible’.”
Jayne Dunn, chair of SYPA, added: “South Yorkshire Pensions Authority has curated the estate and Waldersey Farms from 400 acres over the last 40 years, establishing itself as one of the UK’s largest food producers. As farming moves into a new era of increased complexity, meeting the combined demands of food security, localism, biodiversity enhancement, climate change and more, we felt that the opportunity to introduce a new partner able to more actively manage the estate and fully realise its potential was in both the best interests of the holding and the longer term interest of our scheme members.”
Royal London Asset Management was advised by Addleshaw Goddard, Savills and Deloitte. SYPA was advised by Eversheds Sutherland, PWC and Bidwells.
