The commitment will be spread across two different funds aimed at building crucial life sciences real estate, as well as renewable energy infrastructure in Britain.
Pension pool Border to Coast Pensions Partnership, which is owned by 11 local government pension schemes in England, has committed £80m (€93m) to two funds – one focused on building vital life sciences real estate and the other on renewable energy infrastructure.
Border to Coast has made a £40m commitment to the UBS UK Life Sciences Property strategy, which is aimed at building real estate for the life science industry, supporting research, development and manufacturing in the UK – especially in the areas around the universities of Oxford, Cambridge, and London, dubbed as the ‘Golden Triangle’.
The pension pool is also investing £40m in the Quinbrook Renewables Impact Fund II which focuses on accelerating the energy transition in the UK by supporting the construction of renewable energy projects. These range from wind and solar farms to the decarbonisation of infrastructure and increased grid stability.
UK Opportunities strategy
These latest investments form part of Border to Coast’s £500m UK Opportunities strategy, which sits within the pension pool’s broader £18bn private markets programme, and invests in new building and development in the UK.
“The two funds have been selected as they provide the opportunity to invest in strategies consistent with the UK Opportunities mandate. Both areas have recognised demand drivers and capital requirements that present the opportunity for risk-adjusted returns, and each fund underwent stringent due diligence ahead of commitment to ensure we are confident in the strength of management, adherence to our ESG criteria, as well as the potential to support positive economic and societal benefits,” a Border to Coast spokesman told Impact Investor.
Border to Coast’s partner funds include Durham, Bedfordshire, Cumbria, East Riding, Lincolnshire, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne and Wear and Warwickshire.
“Investment that has an impact in the communities we serve, and the UK as a whole, is a key aspiration of our investment strategy at Durham Pension Fund. First and foremost, that investment must be a sound financial choice, but having a genuine impact in those communities is also a key objective for us,” said Paul Cooper, head of pensions at Durham County Council Pension Fund.
Cooper added that pooling investments through the Border to Coast partnership provided the Durham pension fund with more UK-based investment opportunities.
The life sciences sector is poised for significant growth, with the UK government making it a part of its ten-year industrial strategy, according to Olivia Drew, portfolio manager at UBS Asset Management.
“However, to realise the sector’s potential and wider benefits, there is a need for physical infrastructure and buildings to support groundbreaking research, development, and manufacturing. We have invested across the Golden Triangle, holding assets in Oxford, Cambridge, and Stevenage, to support this critical sector,” Drew told Impact Investor.
This article was updated on 14 April 2025 to add a quote from UBS Asset Management.
