The Universities Superannuation Scheme (USS) has added 32 children’s nurseries and a special educational needs school to its alternative property portfolio.
The assets are part of the PINE unit trust which USS has bought from Epris, a private equity fund manager, for £95m.
PINE unit trust is a property portfolio comprising assets across the UK let to a range of different tenants on long-term index-linked leases.
Included in the portfolio are four of the country’s top 10 nursery operators and a leading provider of special needs education, the £57bn pension scheme said in a statement.
USS head of private markets Mike Powell said: “As part of our innovative and flexible investment approach, we are increasingly looking at alternative property assets as a significant source of properties offering a diversity of tenants on long leases and backed by strong covenants.”
USS deputy head of property Alex Turner, added: “This was a particularly attractive opportunity for us, in line with our strategy for targeting index-linked, longer lease property which will produce long term, stable returns for the benefit of our participating employers and members.”
The scheme was advised by JLL, Carey Olsen, DLA and PwC.
The deal follows the £100m launch earlier this year of the Supported Housing Investment Limited Partnership (SHIP) – a joint venture between USS and Morgan Sindall Investments, providing purpose built housing for vulnerable people with physical and learning disabilities.
In April, USS was part of a consortium of investors led by Macquarie that agreed to buy the UK Green Investment Bank from the government.
