Published date: 20 February 2025
Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.
Contract summary
Industry
Banking and investment services - 66100000
Pension investment services - 66131100
Portfolio management services - 66140000
Pension fund management services - 66141000
Location of contract
S71 1HG
Value of contract
£8,000,000 to £16,000,000
Procurement reference
20250220094038-104506
Published date
20 February 2025
Closing date
28 March 2025
Closing time
5pm
Contract start date
1 October 2025
Contract end date
30 September 2039
Contract type
Service contract
Procedure type
Negotiated procedure
Contract is suitable for SMEs?
Yes
Contract is suitable for VCSEs?
No
Description
SYPA is seeking to appoint an investment manager (authorised by the Financial Conduct Authority) to work in partnership with SYPA to deliver SYPA's planned investments into domestic housing within SYPA's Place Based Impact allocation. SYPA has allocated an initial c.£75m of un-levered equity to this strategy with the objective to support the direct development of affordable, single-family housing in the geographical region of South Yorkshire through a build to rent model.
SYPA aims to facilitate the building of high-quality and sustainable (as measured by an Energy Performance Certificate of A-C) private rental sector housing, with a proportion of units available to eligible tenants at a Discount to Market Rent. SYPA understands that affordability is a key concern for many, and SYPA intends to work with the investment manager to define the appropriate measures of affordability and the achievable Discount to Market Rent across the South Yorkshire region. Through this planned investment, SYPA will aim for a geographical spread of new housing across the four South Yorkshire districts of Barnsley, Doncaster, Rotherham and Sheffield.
The partnership's objective will be to provide SYPA with sustainable long-term income and capital growth, secured against a portfolio of primarily new built private rental sector units in South Yorkshire. Once operationally stable, SYPA aims for the investment to deliver an income yield of 3-4% per annum and a target annual return of 6%. SYPA does not intend to become a registered social housing provider and/or landlord. The total SYPA allocation to this partnership is expected to grow as it is rebalanced in line with the overall pension fund as additional capital will be allocated to the partnership for investment to maintain its target weight within the overall strategic asset allocation. The value of the investment will be a minimum of £75m and could increase to up to £95m, as SYPA aims to maintain a 0.75% weighting of total assets to this mandate.
SYPA does not intend the partnership vehicle to take on planning risk but intends to facilitate the development of housing through investing in a combination of forward funding or forward purchases and / or standing investments. The investment manager will oversee the facilities management and rent collection from these properties where SYPA expects to receive quarterly rental income from the properties, whilst providing institutional funding to meet the affordable housing needs within the South Yorkshire area. The sale of assets will not be prohibited, should the manager deem this to be in the interest of the partnership, however this is not the primary objective.
Further details are set out in the procurement documents.
More information
Links
About the buyer
Contact name
Michael Littlechild
Address
Oakwell House, 2 Beevor Court, Pontefract Road
Barnsley, South Yorkshire
S71 1HG
ENG
Website
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Closing: 28 March 2025, 5pm
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