Pramerica UK Residential Ground Lease Fund

The Challenge

PropertyMatch was mandated by the John Lewis Pension Fund to sell their 40% equity interest in The Pramerica UK Residential Ground Lease Fund. The Fund had approximately £220m of assets, was closed-ended, maturing 2034 with no liquidity gates in the intervening period. The fund was unlevered and had a very low distribution yield, a function of the low risk assets it was acquiring, but was especially suited to LDI investment strategies.

The Solution

PropertyMatch worked in conjunction with the Manager and Trustees to present an investment case which was marketed to approximately 250 pension funds directly and through consultants. Following a formal process several bids were received for different amounts of units. Following discussion with the client the decision was taken to sell the entire position to two pension funds under the Royal Sun Alliance umbrella at a price that reflected a 5.1% premium to the last reported NAV.