Newcore Capital X IPE Real Assets – Mansion House Accord brings hope to UK’s institutional real estate industry

Newcore’s CEO, Hugo Llewelyn recently spoke to Christopher Walker regarding the recent Mansion House Accord. The goal is to enhance returns for pension savers while stimulating the UK economy, building on the 2023 Mansion House Compact. The signatories manage over £252bn in assets, covering about 90% of UK DC pension funds, making the move particularly significant for the UK real estate sector, which stands to benefit from increased long-term capital. Industry leaders have expressed strong support and whilst the Accord is voluntary Walker’s article shows the government has hinted at compulsion if industry progress stalls.

The timing of the Accord is seen as favourable. Hugo commented; “We think, in practice, there are great opportunities for the sorts of assets under consideration in the UK, starting with 2025 prices, so this should lead to a positive outcome all round.”

This aligns with views from other fund managers who see the move as a way to:
– Reverse capital outflows from closed or maturing DB schemes
– Enhance liquidity and pricing transparency in the UK real estate market
– Encourage overseas investment and unlock regional opportunities outside London
– Boost domestic investment focus and improve long-term market strength

Read the full article here.