INTRODUCTION
Wiltshire Pension Fund (WPF) is part of the Local Government Pension Scheme (LGPS), a defined benefit pension scheme for local government and associated employees. Our investment objectives are to achieve sufficient investment returns such that there are funds available to pay the pensions as they fall due, and to meet the liabilities over the long-term whilst maintaining stable employer contribution rates.
As an open, defined-benefit scheme, we have a very long-term investment horizon, and therefore consider long-term sustainability issues as financially material to the scheme. This has led to WPF making several investments in portfolios which have the goal of earning superior risk adjusted returns by investing in assets that deliver positive social and/or environmental impacts. Many of these types of assets are based in the UK and are therefore delivering positive impacts close to home
We deliver our investment strategy by focussing on outcomes. Some of the investments shown in this report have been made through our pooling company, Brunel, alongside our partner funds. Others have been made by WPF directly. And other investments have been made by collaborating with other funds to achieve efficiencies and benefits of scale.
We are delighted to bring together information on our UK investments in one place, and showcase the amazing work done by the LGPS in the UK , by putting together our first ever Investing in the UK Report.
SO WHAT UK INVESTMENTS DO WE HOLD?
Throughout this report, we will evidence how our portfolios1 are delivering positive outcomes for the UK , by bringing our approach to life with real examples. We hope you enjoy reading about our UK investments!
1 This report focusses on our portfolios of real assets (investments like property or infrastructure) and private equity.
Equities listed on UK stock exchange
UK private equity
UK Government bonds
UK Property
UK impact affordable housing
UK renewable infrastructure
27% of our invesments are based in the UK!
Data correct as at 31 March 2024
WHO WE ARE
£3.4bn of assets
>85,000 members
c. 180 employer organisations
As a fund, our vision is “to deliver an outstanding service to our scheme employers and members”. Part of doing this effectively is understanding who they are. Our employer organisations are predominantly located in Wiltshire, interestingly, the same is true for our members:
Analysis of our membership data shows that 90% of the Fund’s members live in the South West of England, with 84% living in Wiltshire.
84% of our members live in Wiltshire
The Fund is administered by a dedicated team at Wiltshire Council, made up of c.42 individuals who are responsible for delivering the service and managing the £3.4bn investment portfolios.
To learn more about how we invest, why not visit our investment webpages , and watch our short film about our approach We loved visiting some of our investments during the making of the film, and taking the time to not just tell but actively show our members what our approach to investing looks like.
Members of the WPF investment team
OUR LOCAL IMPACT
As well as through our investments, we also aim to create a positive impact on the local community through our operations.
SUPERMARKET SWEEP 2024!
2024 marked the 10-year anniversary of our relationship with Ninety One, our emerging markets manager.
To celebrate this milestone, in December 2024 we coordinated an event to benefit those most in need in the local area, and took part in a fiercely competitive supermarket sweep to purchase in-demand supplies for the local foodbank, including all the produce needed to enable families to make a full Christmas dinner.
Team Ninety One came in last, with Team WPF in a close second place to the winners Team Storehouse Foodbank! We are very grateful to Ninety One for choosing to celebrate our long and successful professional relationship by giving back to the local community.
GROW YOUR OWN TALENT
As part of our Business Plan 2024/27, we have set out a strategy for resourcing our team. One of our core resourcing principles is Grow-your-own.
By adopting this principle, we have been able to create numerous opportunities for our local team, thereby helping to develop and empower local talent.
Examples of the initiatives we have created are as follows:
GROW-YOUR-OWN
We create career-development opportunities and training for all our staff to support resilience and succession planning
Have you seen #LGPS jobs?
Through our participation in this fantastic initiative, we hope to educate and inspire the wider community about the benefits of working in the LGPS.
INVESTING IN OUR OWN BACKYARD
We are delighted to showcase several investments within our portfolios which our managers have selected as compelling opportunities right in our own backyard. These investments include two solar farms, which are part of our £100m commitment to renewables in the South West. We worked with 5 other LGPS funds to create a dedicated vehicle for this investment, and the benefits of scale are enabling us to make a widespread positive impact. You can read more here: £100m commitment to South West renewables – Wiltshire Pension Fund. Other investments shown below include two affordable housing developments (one of which is well underway and other which will be breaking ground soon), and also a care home.
These investments benefit our local community whilst also providing financial returns in line with our overall strategy.
UK PROPERTY INVESTMENTS
Our allocation to UK property is managed by Brunel, our pooling company. They have invested our allocation across a range of different property funds, some of which invest in a broadly diversified range of different types of property, and some of which have more of a specialist investment strategy, specifically investing in a certain type of property. We also hold some long-lease property funds in our secured income portfolio. We have included all these property investments here together for the purposes of this report.
£272m in UK property
85% of our property funds have set a target of net zero by 2050 or earlier
23 different property funds
The following chart shows analysis of the sector exposures of the main property portfolio (i.e. excluding the long lease property funds) to illustrate the wide range of different types of property that we invest in:
Standard retail
Shopping
Retail
Supermarkets
Offices
Industrial
Distribution
Student accommodation
Residential (non student)
Hotels
Leisure
Healthcare
In order to understand our investments and to ensure that they are being appropriately managed, we conduct occasional site visits. This provides us with the fantastic opportunity to ask questions, obtain assurance, and see aspects of the investments that are only possible in person. In this report, we have shared case studies of two very different property investments…read on to learn more!
FINANCING INDUSTRIAL TRANSFORMATION
On a cold November morning, we made our way to North Greenwich, where we met our colleagues from Brunel and Orchard Street – a fund that we're invested in via Brunel's UK Property portfolio (£10m commitment), which invests primarily in UK commercial property. We visited two industrial units: Lombard Trading Estate, Charlton, and Euroway Trade Park, Aylesford.
LOMBARD TRADING ESTATE, CHARLTON
During our visit, we saw a vacant unit, due to be refurbished in March 2025, and we were keen to understand how the transformation will be achieved.
As the 8 units become vacant, they will undergo a comprehensive refurbishment to decarbonise and upgrade, including new roofing, removal of asbestos, installation of efficient LED lighting, smart energy metering equipment, and a refitting of the front façade.
The redevelopment ensures that the operational practices align with Paris Agreement targets. Solar panels will be installed which will power on-site EV charging stations as well as public charging points, which will be powered by renewable energy from the grid.
The first refurbished unit is set to be leased by next summer, with an anticipated return of 11–14%.
AYLESFORD
After a short drive, we arrived at the second site located at Euroway Trade Park where we saw a recently refurbished unit.
Enhancements to the unit include the installation of insulated offices, heat pumps, solar panels, double-glazed windows, and LED lighting. As a result, the energy performance certification (EPC) rating improved from D to A+. These units were also fitted with showers and a kitchen – unusual, but important additions to these industrial units, improving tenant/employee wellbeing.
Biodiversity was considered in the design, with greenery replacing traditional bin roofs and structures added to trees to create habitats for insects.
This site demonstrates how these projects significantly contribute to the local social value. It is estimated that this development delivered £20,000 in additional social value through encouraging local employment, apprenticeships, excess material donations to a local hospice and air quality improvements. This project demonstrates that when redevelopment is done right, we can contribute to the local community without sacrificing returns.
INVESTING IN LIFE SCIENCES INNOVATION IN STEVENAGE
In early November 2024 we visited Stevenage, an affordable and easily accessible town located within the “golden triangle” between the academic centres of London, Cambridge and Oxford. Here we met with representatives from UBS’ UK Life Sciences Fund (WPF investment c.£7m) – a fund that we’re invested in via Brunel’s UK Property portfolio. The fund is focused on developing “laboratory-enabled office space, dry lab, wet lab and manufacturing facilities in [the] UK”, providing life sciences businesses with the specialised workspaces required to flourish and develop treatments with the potential to improve length and quality of life.
During our trip we visited two sites in Stevenage, the first of which is a 30-acre campus style business park, part of which has been let to Catapult on a 50-year lease. Catapult are a part-government funded organisation which provides research and development facilities, technical expertise and commercial support to innovative businesses in the UK. UBS’ plan for the wider site is to create a campus for life sciences businesses that encourages collaboration and innovation so that businesses, such as those supported by Catapult, can thrive. UBS have plans for ~14 buildings, including a visitor hub, gyms, childcare facilities, cafes and more lab space. The existing buildings share heating between themselves, and some are equipped with solar panels. The goal is for the site to be net zero in the coming years –something UBS are mindful of in the future development of the site.
The second site that we visited has been let on a 20-year lease to Autolus, a company whose focus is creating personalised treatments for cancer and autoimmune diseases. They do so by taking patients’ blood and programming their T cells to recognise and kill cancer cells. So far, their revolutionary treatments are indicated to be ~90% successful with little to no side effects. As well as developing groundbreaking treatments for the world, Autolus are also creating local opportunities, with ~30% of the workforce in Stevenage living locally. The building that they’re letting from UBS is the first of its kind and was built in only 16 months, less than half the usual build time. This was achieved by using prefabricated modules which were made offsite before being lifted into place in Stevenage. This modular design means that the building is highly adaptable and can be customised as the business’s needs change or can be adapted for a new tenant, if need be.
Our investment through Brunel into UBS’s Life Sciences Fund enables us to both benefit from and support the growth of the life sciences sector, supporting UK businesses to achieve their full commercial potential and bring innovative new products to the world
INVESTMENT IN UK LIFE SCIENCES
c . 15% NET RETURNS
SUPPORTING INNOVATION AND COLLABORATION
CREATING NEW JOBS AND SUPPORTING GROWING BUSINESSES
Members of the WPF team and Brunel Pension Partnership visiting the sites in Stevenage
AFFORDABLE HOUSING
The investment case for affordable housing in the UK is clear, with demand far greater than supply, and thousands of families on local authority waiting lists. Affordable housing provides us with inflation-linked income with the potential for long-term capital appreciation – a perfect match for a long-term open pension scheme such as Wiltshire Pension Fund. Affordable housing also provides very positive benefits to those on lower or median incomes, priced out of home ownership in the less secure private rental sector. We believe that the positive impacts delivered by investing in affordable housing are completely integral to the investment case
5% of the Fund committed to UK affordable housing
At least 20% lower than market rate = the broad definition for affordable housing
Learn more from our UK Affordable Housing Impact Report
Visit our interactive map to learn more about all the developments in our portfolio
We invest with 4 different managers to deliver this portfolio, with each manager offering a differentiated approach.
A sample of the impact metrics which we collect for this portfolio are shown below. These metrics demonstrate that our investment is helping to get more people into more affordable and more energy efficient homes, in areas where the need is highest.
5,207 HOMES IN THE PORTFOLIO (WPF SHARE = 10.4%), 74% OF WHICH ARE NEW BUILDS
ON AVERAGE, HOMES ARE LOCATED IN AREAS WITH AFFORDABILITY BEING 13% HIGHER THAN THE NATIONAL AVERAGE
85% OF HOMES IN OUR PORTFOLIO ARE ENERGY EFFICIENT, I.E. EPC B-RATED OR ABOVE
We are proud to share some examples of specific investments in our affordable housing portfolio in this report. As well as creating more affordable housing stock, there are other clear benefits too, such as building new communities, amenities that make life easier for residents, and environmental innovations.
A VISIT TO WANTAGE – INCREASING THE SUPPLY OF ENERGY EFFICIENT AFFORDABLE HOMES IN THE LOCAL COMMUNITY
Just an hour’s drive from our offices is one of the 11 developments within the UK Community Housing Fund managed by Man Group (£30m total commitment).
From the moment we arrived, the development’s aviation theme stood out, which we soon learned was inspired by the development being located on a former WWII airfield once used by American forces. It was great to see the development retain its historical roots, with themed street names and even the preserved runway at its centre. Located near Didcot station and close to major roadways, including the A34, it provides excellent transport links to London, Southampton, and Oxford.
We learned that the total development will offer 2,500 homes, 108 of which have been funded by Man Group and are being offered on affordable or shared ownership tenures in an area where new affordable rented supply has not been offered since 2020. All of these homes increase the supply of local affordable homes above the required threshold. Not only are these homes meeting high demand locally with forecasts showing population growth increasing and homes selling as soon as they are being completed, the development is also helping to build communities creating:
• Two primary schools and one secondary school
• Open spaces, play parks and allotments
• A new local sports centre, with Sports England specification pitches
• New road links improving accessibility
Inside the show homes, the energy efficiency was immediately felt with the warm welcome from the cold outdoors. Whilst looking around the 2-bedroom show home, the site manager explained that each home is constructed within 20 weeks, reducing both build time and carbon footprint through pre-insulated panel construction. Rated EPC A (i.e. the highest rating for energy efficiency), these homes are both sustainable and quick to build. Environmental initiatives on site include:
• Solar panel installations for clean energy
• Timber frame construction for lower embedded carbon
• A shift from gas to air source heat pumps for heating
• Electric car charging points to support sustainable transport
Our visit highlighted that with innovative practices and forward-thinking investments, we can achieve our financial objectives whilst also delivering impactful, locally accessible affordable housing that meets community needs.
108 NEW HOMES (43 AFFORDABLE RENT, 55 SOCIAL RENT, 10 SHARED OWNERSHIP)
c . 10% RETURN OVER 10 YEARS
EPC RATING A
NEW COMMUNITY AREAS AND SPORTS FACILITIES
NEW PRIMARY AND SECONDARY SCHOOLS
OTHER AFFORDABLE HOUSING SITES
SALTDEAN
Saltdean is a development of 71 new homes just outside Brighton, right on the edge of the South Downs, managed by Man Group in their Community Housing Fund, and we have been privileged to see the journey of this site from an old dairy farm through to a busy building site. The design and materials are sympathetic to the origins and location of the development and the site includes attractive communal areas to promote a feeling of community. The site addresses a gap in the local market by providing affordable, family-friendly housing in an expensive area. There are multiple environmental initiatives on site, such as net zero homes for key workers, air source heat pumps, solar panels for every rented home, communal EV charging and monitored bird and bat boxes for biodiversity. We look forward to returning in due course to see the completed development!
71 NEW HOMES
ABBEY PLACE
Abbey Place, a multi-family construction comprised of two towers and a shared podium garden at the end of the Elizabeth Line in London’s zone 4, is the largest standing asset in CBRE’s Affordable Housing Fund. The area is currently undergoing a huge transformation, and Abbey Place is instrumental in turning this area into a new community. The towers contain 173 shared ownership properties, and 72 affordable rented units. The homes are energy efficient with EPC ratings of B, communal heating, and solar panels to power the lifts and communal areas, which reduces the service charge for residents. The roof terrace affords a spectacular view over to Canary Wharf. With high demand for the homes, this development has demonstrated that it is delivering against a clear need for affordable housing
72 DISCOUNTED RENT HOMES
173 SHARED OWNERSHIP HOMES
RIGHT NEXT TO ABBEY WOOD STATION 8% RETURN OVER 7–10 YEARS
CLIMATE TECH VENTURE CAPITAL
As part of our Climate Opportunities (Clops) portfolio, we have an allocation to climate tech venture capital, through our £10m commitment to World Fund. This investment provides us with an opportunity to invest in start-up companies and gain exposure to new technologies and innovation. We will be measuring the impact of this portfolio by looking at the climate impact targets set by World Fund, who only invest in companies whose business model has the potential to deliver carbon reduction of at least 100 MT CO2 . While the World Fund strategy has the freedom to invest anywhere in the world, there are several interesting companies in this portfolio where World Fund have identified best-in-class opportunities which are based in the UK.
REACHING NEW HEIGHTS: WILTSHIRE PENSION FUND VISITS SPACE FORGE
In December 2024, Wiltshire Pension Fund’s investment team visited Space Forge – a Cardiff based company in our venture capital fund with World Fund which sits in our Clops portfolio
Space Forge is an innovative in-orbit manufacturing company that produces high quality materials and specialises in low impact landings. The team were given a tour around the lab and workshop where Space Forge’s flagship satellite – the ForgeStar - is being developed. ForgeStar is a reusable satellite designed for manufacturing materials for semiconductors. By utilising space's unique environment, they can create manufacturing conditions that are impossible to replicate on Earth which produces material of the highest purity. With a team of over 70 people, Space Forge is the only company in the UK that can produce gallium nitride and silicon carbide. The semiconductors produced (using crystals) could result in EV chargers being almost twice as efficient, thereby lowering energy consumption and emissions within industries. Our investment in Space Forge via World Fund contributes to our Clops strategy by reducing industrial carbon emissions while generating strong returns. In essence, Space Forge endeavours to reduce the amount of energy society consumes by revolutionising the materials the modern world relies upon.
Our visit to Space Forge reaffirmed the rationale behind World Fund’s investment and is exemplary of our innovative Clops portfolio and we are proud to be investing in UK based companies which support a global transition and drive technological innovation without compromising financial returns.
NET ZERO MANUFACTURING TECHNOLOGY
INNOVATIVE MATERIALS
DRIVING THE TRANSITION
Mission Zero Technologies (MZT) is a London-based company developing a scalable direct air capture (DAC) solution which filters CO₂ out of the air, with the aim of using that CO₂ to make “almost anything you can think of — food, clothes, fuels, chemicals, buildings, even vodka.” Their hope is that they’ll be able to create a DAC solution scalable enough to capture enough CO₂ to replace oil almost entirely, and they’re aiming to do so within less than a decade.
One of the largest challenges facing CO₂ capture solutions is efficiency, MZT say that their technology results in energy savings of 62.5% when compared to their competitors. This is achievable in part due to their solution’s ability to operate at ambient temperatures and pressures.
MZT’s focus is now on continuing to work on reducing costs, improving scalability, and working with partners to continue developing net zero cement, synthetic aviation fuels and other products using the CO₂ captured by their DAC solution.
Anaphite is a Bristol-based company on a mission to decarbonise the production of electrodes by moving the electric vehicle (EV) battery industry to dry coating.
Their new process of dry coating using carbon-nanotubes, considerably reduces energy consumption and removes the need for the use of potentially hazardous solvents. Anaphite’s data shows that electrodes made with their composite can match and beat a wet coated electrode of the same formulation, while also reducing the cost of EV batteries by 5–10%.
Anaphite is already working with global car and battery cell manufacturers and they’re now focusing on scalingup the dry coating process, exploring other applications of their product/process, and expanding the team in order to accommodate for growing demand and customer requirements.
The objective of our Clops portfolio is “to earn superior risk-adjusted returns by investing in a diversified mix of assets which have the intention to deliver real World change by actively supporting the transition to a low carbon economy”. By deploying part of Clops into climate tech venture capital via World Fund, we believe that we are fully embracing the opportunities that arise from the transition to net zero. The companies that World Fund selects have the potential to really make a difference and have decarbonisation at the heart of their business case. We are delighted to be supporting companies in the portfolio where UK innovation is driving the transition, helping us to achieve our net zero by 2050 goal.
PRIVATE EQUITY
We have a long-term allocation to private equity of 7.5% of the Fund, which is invested globally, and which we are building up over several years to ensure a well-diversified portfolio. Through our private equity portfolio, managed by the Brunel pool, we have exposure to several UK companies, across a range of sectors and industries, as demonstrated by the following case studies.
Dexory offers an inventory management and analytics platform which combines machine learning, AI, and robots to provide users with accurate, real-time visibility of inventory and warehouse operations The volume of goods being moved across the world is increasing exponentially and consumers expect to receive the right goods on time. Dexory’s platform uses autonomous robots to capture high-quality 3D scans of warehouses and inventory, then, using AI and machine learning, these scans are used to create a real-time model of the warehouse and its inventory so that users can monitor inventory levels, track changes and model future scenarios. This not only provides users with end-to-end visibility of the journey of goods and removes the need for time consuming manual stock checks, but also reduces waste and overheads, since Dexory can identify free space, damage to racks, loose items, and other hazards – supporting more efficient and safer picking and packing. The solution is scalable across multiple sites, easy to implement (taking as little as a week to set up), and is already being used by the likes of Maersk, Denso, and Menzies Aviation.
Founded in 2022, Opna, meaning ‘to open’ or 'to unlock' in the Nynorsk and Icelandic languages and closely resembling the Hindi and Urdu word ‘Apna’, which means 'ours', points to the need for ownership and empathy in creating solutions for our planet and communities. Opna empathises with the need for equitable climate financing that assists corporates in credibly reaching their climate goals and net zero targets, whilst elevating the barriers for high-quality climate projects get financing, particularly in the global south. Opna do this by revolutionising climate financing by pooling carbon budgets, providing long-term funding, and managing risk for diverse projects. Through their proprietary technology, it enables companies to discover transparent and measurable carbon credit frameworks, pre-vetted projects, and elevate carbon capture standards. Their projects span nature-based solutions, engineered carbon removal, and community-centred sustainability initiatives. In essence, Opna is a UK based company acting as a bridge between corporate financing and on-the-ground carbon projects, globally.
Astrak are global specialist distributors of parts for construction and earth moving machinery, priding themselves on their stock availability and speed of delivery. They also offer an on-site part fitting service, workshop/repair services, and a rubber track recycling service. Astrak have a loyal base of customers who value the company’s excellent level of service. The company’s excellent record has allowed them to open eight facilities across the world, with plans to increase its market share organically as well as by leaning on the experience of Inflexion (the private equity firm who Wiltshire Pension Fund is invested via) in mergers and acquisitions (M&A) to make considered acquisitions in a fragmented global market.
Learning Pool is a technology company that specialises in digital learning solutions for a variety of organisations. They focus on addressing employee performance challenges through data-driven learning experiences, a learning platform, compliance courses, Artificial Intelligence and skills development tools. Globally, Learning Pool support over 1,300 customers whether for onboarding, upskilling, compliance, extended enterprise, or the whole business, Learning Pool develops effective and agile workforce through learning
INVESTMENTS ACROSS A RANGE OF SECTORS
SOLUTIONS TO HELP DELIVER POSITIVE SOCIAL AND ENVIRONMENTAL IMPACT
Through our partnership with Brunel we have been able to implement a fantastically diversified private equity portfolio, which benefits our investment strategy by helping to boost returns and manage our risk, through exposure to a wider range of risk/return drivers, making our strategy more resilient overall. Investing in private companies means we can access smaller companies that are not listed on a stock exchange, enabling us to invest directly into new business ideas and innovation, including these fascinating companies from around the UK.
CHAMPIONING UK INNOVATION
SOUTH WEST RENEWABLE INFRASTRUCTURE
In late 2023, we were absolutely delighted to announce that we had committed £100m to the Wessex Gardens fund, managed by Schroders Greencoat. We collaborated with 5 other LGPS funds to make this a reality, working together with Schroders Greencoat to create a fund of £330m in total which is dedicated to accelerating the development of renewable assets across the South West of England
Wessex Gardens sits within our Climate Opportunities (Clops) portfolio.
The first investment made within Wessex Gardens was the Toucan Energy Portfolio, a deal which was the largest operational solar portfolio transacted in the UK! This investment enables us to earn strong returns for our members while also supporting our goal of net zero by 2050.
Read more about our £100m commitment to South West renewable energy here!
The total portfolio is made up of 17 sites, spread primarily across South West and into South Wales. The largest single site is at Wroughton with the smallest being Dunkeswell in Devon.
Check our our interactive map for all of the locations and details!
A LUNCHTIME VISIT TO TROWLE SOLAR FARM
On a sunny lunchbreak, perfect weather for harvesting photons, we made the short drive across Trowbridge to the Trowle Solar Farm, sitting on elevated land on the outskirts of town. This site, which is the solar farm in the portfolio the most local to the Wiltshire Pension Fund offices, covers 13 acers and generates 5MW of power, enough to power 1,800 homes. It is one of the smaller sites in the portfolio, in contrast to the 60MW site in Wroughton (see the following case study for more info!).
CAPACITY TO GENERATE 5MW 13 ACRES
CAPACITY TO POWER 1 ,800 HOMES
WROUGHTON SOLAR FARM
The largest single solar farm in the portfolio, and one of the largest in the UK , is based in our very own county, on the site of a former airfield.
The site covers 88 acers with 200,000 solar panels generating 60MW of power, enough to power 21,000 homes. The solar arrays at this site were installed in 2016 and are taller than at many other locations, reaching high above our heads. From the ground you could see solar panels stretching seemingly for miles.
The power generated at this site is covered by a 15-year fixed agreement with a large global bank, providing a secure, inflation-linked source of sterling income. The site is 8 years old and has the potential to run for up to 40 years.
On exploring the site, we encountered deer, swifts, birds of prey and a beautiful hare – biodiversity protection is an important consideration for these sites. Careful design is also needed to protect the panels and cables from damage by wildlife, mitigations such as making sure all cables are secured and buried underground are important. As we walked past row after row of solar panels, we discovered the old runway, and at the same moment were treated to a dramatic low level fly past by an RAF transport aircraft, reminding us of this site’s historic purpose. Our visit was a fantastic opportunity to witness the positive impact of our investments firsthand and to be able to assure ourselves of their robust management.
20,000
CAPACITY TO POWER 21 ,000 HOMES
UK INFRASTRUCTURE
Within our portfolios, we have invested in a wide range of UK-based infrastructure assets. We are proud to showcase two such examples in this report.
CARBON NEUTRAL GREENHOUSES – THE FUTURE OF FARMING?
One of the assets in our £100m portfolio of operational renewable assets, managed by Schroders Greencoat via the Brunel pool, is a collection of carbon neutral greenhouses, located in the South East of the UK
These assets are targeting a return of >8%, which comes from Renewable Heat Incentive payments (a scheme which is now closed for new investments, but is secured for existing projects), and inflation-linked rental payments from the growers, who have signed 20-year leases.
The greenhouse we visited is the largest of its kind in the UK, at a staggering 12.5 hectares. Inside the greenhouse, 334,000 pepper plants grow up strings from tiny compost squares, where a calibrated amount of water, nutrients and CO2 is delivered by a system of pipes. Larger pipes encircle the rows of plants, providing heat to the greenhouse. A busy fleet of self-driving carts head up and down the rows, entering the greenhouse empty and leaving full with a freshly picked harvest of peppers.
The plants are farmed on a 1-year rotation. Each pepper plant grows 3 “heads”, which are the tall fruiting stalks. Each head produces around 25 peppers, leading to an annual yield of 25 million peppers At the end of the year the plants are composted by local farmers, and the planting cycle begins again.
Rainwater is collected from the roof and last year this provided all the water needed for the plants. There are hives on-site that house bees which pollinate the plants. Additionally, the CO2 for the plants is also produced on site
At a nearby water treatment plant, once the water has been processed, clean water is released which is 6 degrees above ambient temperature. The onsite energy centre uses heat pumps to boost this to 50 degrees C, and this water is then used to heat the greenhouse. The cooled water which is then released is better for local ecosystems. The heat pumps are powered by electricity generated by combined heat and power. The CO2 produced in this process is stored in a giant cylinder and used to feed the plants.
Our visit to the greenhouse was an ideal way to discover more about our investment, hearing direct from the growers. This investment is an ingenious marriage of established technologies, enabling us to earn returns in a sustainable way, whilst promoting better outcomes for the environment and the British food economy
GREENLINK INTERCONNECTOR
Investment in the UK serves as an opportunity to support and enhance regional energy security. Through our mandate with Partners Group, we are invested in Greenlink, which is a subsea and underground 500 MW energy infrastructure project connecting power markets in Ireland and Great Britian with onward connections to Europe. From Pembrokeshire in Wales to County Wexford in Ireland, there are nearly 120 miles of offshore submarine High Voltage Direct Current (HVDC) cables to allow for efficient transportation of electricity over long distances. These cables are usually buried in the seabed, but when the geology and marine environment doesn’t allow, protection measures are put in place. The onshore underground cables reach depths of 850mm and can be laid with local road networks and land.
This project will increase security of electricity by diversifying energy sources with the integration of renewable energy technologies which has the potential to power 380,000 homes
CONCLUSION
Throughout this report we have showcased a wide range of different investments across the UK, covering affordable housing, property, healthcare, life sciences, private companies and start-ups, solar energy and infrastructure assets. As well as providing the risk/return characteristics that we need to deliver our objectives as part of our overall strategy, these investments are also delivering significant positive social and environmental impact in the UK , helping to ensure better outcomes for both people and the planet.
We would like to thank our investment managers for supporting our enquiries in writing this report.
Members of the WPF team and Committee visiting a local investment
