Nabarro has advised CBRE UK Property Fund (UKPF) in the merger with Electricity Supply Pension Scheme (ESPS) UK property portfolio to create a £1.47bn fund. The fund is authorised by the Financial Conduct Authority (FCA) and is operated as a Property Authorised Investment Fund (PAIF).

CBRE Global Investors has been the investment manager of the ESPS’ direct UK property portfolio since 2006. Electricity Pension Trustee Limited (EPTL), the scheme trustee of ESPS, had been considering the long-term options for its UK property portfolio for some time. EPTL’s investments advisers, Aon Hewitt, put forward a number of options and, after consideration, it was decided to merge the UK property portfolio with an existing core balanced fund. Following a process run by Aon Hewitt, the CBRE UK Property Fund, managed by CBRE Global Investors, was selected.

Real Estate partner James Madden led the Nabarro team and was assisted by partner Chris Chambers, senior associates Ian Craig, Daniel Glowacz and Richard Rounding, and associate Jamie Davies.

James Madden, Real Estate partner at Nabarro commented:

”We were delighted to advise on such a significant property fund merger. The CBRE UK Property Fund has a strong reputation, having outperformed the IPD/AREF All Balanced Funds Index on a one-year, three-year and five-year view. Investors will be able to benefit from the flexible and efficient PAIF structure that is well-positioned to continue to deliver favourable results.”

Aon Hewitt, PWC, Eversheds and Mayer Brown acted for ESPS.