WPP to invest up to £400m in positive impact investments including affordable housing

The mandate will also target impact opportunities across the UK which deliver positive social impact and decarbonisation strategies that support the WPP’s net zero ambitions.

The remainder of the mandate will be invested in UK core real estate focused on the industrial, retail and office sectors, and also specialist and operational real estate such as hotels, self-storage and student accommodation.

In addition, the WPP has appointed CBRE Investment Management to manage its international real estate proposition with a £500m global real estate mandate.

CBRE said the funds will access a “wide range of high-quality real estate assets across regions and sectors”.

Elwyn Williams, chair of the joint governance committee of the WPP, said: “These appointments conclude the majority of the private markets investment managers for WPP.

“Real estate is a core asset class for the eight Welsh constituent authorities and these managers will provide the investments they need to meet their local strategic asset allocations.”

Schroders Capital was previously awarded a £500m private equity mandate by the WPP in January last year.

Sophie van Oosterom, global head of real estate at Schroders Capital, said: “We are very pleased to further strengthen our partnership with WPP.

“Our clients and investors are increasingly demanding more from their real estate exposure and managers. They want to see a razor-sharp focus on sustainability, delivering positive impact and operational excellence to optimise long-term income and value.

“We are committed and well positioned to meeting these advanced challenges and our partnership with WPP is testament to the strength of our proposition.”

WPP also invested in the CBRE Global Infrastructure Fund last year.

Achal Gandhi, chief investment officer for indirect real estate strategies at CBRE Investment Management, said: “We are thrilled to expand our strategic partnership with WPP following this appointment.

“This mandate, alongside a number of other LGPS pool mandates that we are working on, underscores the importance of the LGPS to our platform and our commitment to delivering tailored investment strategies that align with the long-term objectives of this client base.”

UK Core Real Estate will take existing pooled fund investments and transition them to an open-ended direct property investment portfolio over time.

Impact/Local Real Estate will develop an investment programme utilising fund investments and direct asset investments in UK impact strategies, with at least 50 per cent of assets located in Wales.

The International Real Estate proposition will establish an open-ended investment vehicle investing in funds and direct assets on a global basis.

WPP said the appointments of private real estate investment managers were made following a public procurement process, with the support of Bfinance and Hymans Robertson.

The eight LGPS funds that make up the WPP are: Cardiff and Vale of Glamorgan, City and County of Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf.