New mandate targets inflation-linked returns from Northwestern Europe industrial assets
Logistics and industrial properties in Northwestern Europe are set to play a larger role in funding Canadian university pensions through a new mandate between Schroders Capital and University Pension Plan Ontario (UPP).
Schroders Capital and UPP have formed a strategic partnership to invest in mid-sized, urban logistics and industrial assets in high-demand locations across Northwestern Europe, including income-generating land and last‑mile distribution.
The strategy targets long-term, inflation‑linked returns through a mix of capital gains and income.
For UPP, the partnership fits into its plan to build a diversified real estate portfolio that aims for stable, long-term returns for members and supports pension security through effective risk management and asset allocation.
The focus includes embedding material environmental, social, and governance considerations into asset management.
Schroders Capital’s real estate team, which has more than 50 professionals with local operational expertise across core European markets, has managed these types of assets since 2006 and reports a track record of outperforming the industry benchmark over that period.
The platform concentrates on logistics and industrial assets in markets with constrained supply and strong occupational demand.
“There is a clear opportunity set in this sector and our investment thesis aligns with the long-term occupational trends in logistics and industrial sectors,” said Pieter Akkerman, co‑head of Real Estate Netherlands and portfolio manager at Schroders Capital.
He cited the growth of e‑commerce, efforts to improve supply chain resiliency, tight supply of quality assets, and rising sustainability standards as drivers of investment opportunities across AAA‑rated European economies.
