--- title: "Investment Management Services" ocid: "ocds-h6vhtk-04e498" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04e498" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-04e498.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-04e498.json" source: "Find A Tender Service" current_stage: "Tender" buyer: "SOUTH YORKSHIRE PENSIONS AUTHORITY" published: "2025-02-20" --- # Investment Management Services Buyer: SOUTH YORKSHIRE PENSIONS AUTHORITY Current stage: Tender OCID: ocds-h6vhtk-04e498 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04e498) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-04e498.json) ## Summary South Yorkshire Pensions Authority (SYPA) is seeking to appoint an authorised investment manager to manage their planned investments into domestic housing within South Yorkshire. The procurement is in accordance with the Public Contracts Regulations 2015, utilizing a competitive negotiation procedure. This tender is currently at the Tender stage, with a deadline for the Selection Questionnaire (SQ) responses set for 28th March 2025. The contract is expected to last an initial 10 years, with possible extensions, resulting in a maximum duration of 14 years. The initial investment sum allocated by SYPA is approximately £75 million, extending up to £95 million over time. The total contract value is estimated to be within the range of £8,000,000 to £16,000,000. This tender offers significant opportunities for businesses specialising in investment management, particularly those with expertise in housing investments and portfolio management. Firms authorised by the Financial Conduct Authority and capable of managing extensive, long-term investment strategies into affordable housing developments are well-suited for this contract. By participating in this project, businesses can contribute to the development of sustainable housing in South Yorkshire, ensuring both long-term income and capital growth, while addressing community housing needs. This presents a lucrative growth opportunity for experienced investment managers, promising an income yield of 3-4% annually and a target annual return of 6%. ## Notice South Yorkshire Pensions Authority (SYPA) wishes 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 sum of c.PS75m to support the direct development of affordable, single-family housing in the geographical region of South Yorkshire through a build to rent model, to provide SYPA with sustainable long-term income and capital growth. SYPA will appoint the investment manager to set up a closed-ended, private partnership vehicle where SYPA will invest as a Limited Partner. The investment manager will take the role of General Partner of the partnership and manage the investment opportunities, development and required ongoing service delivery on behalf of SYPA. ### Lot Information Lot 1 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.PS75m 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 PS75m and could increase to up to PS95m, 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. Renewal: The partnership vehicle will operate for an initial 10 years extendable by SYPA by two 2-year periods. SYPA anticipates that the duration of the Investment Manager's services contract will align with the duration of the partnership and therefore the contract will have an initial period of 10 years plus two 2-year extension periods (up to a maximum total duration of 14 years). ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/006049-2025 | | Notice type | Tender Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Selective | | Procurement method details | Competitive procedure with negotiation | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 20 Feb 2025 | | Submission deadline | 28 Mar 2025 | | Future notice date | Not specified | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £16,000,000 | | Lots value | £16,000,000 | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Active | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | SOUTH YORKSHIRE PENSIONS AUTHORITY | | Locality | BARNSLEY, SOUTH YORKSHIRE | | Post town | Sheffield | | Postcode | S71 1HG | | Country | England | | ITL 1 | TLE Yorkshire and The Humber | | ITL 2 | TLE3 South Yorkshire | | ITL 3 | TLE33 Barnsley | | Local authority | Barnsley | | Electoral ward | Central | | Westminster constituency | Barnsley North | | Delivery location | Not specified | ## CPV Codes ### Divisions - 66 - Financial and insurance services ### Codes - 66100000 - Banking and investment services - 66131100 - Pension investment services - 66140000 - Portfolio management services - 66141000 - Pension fund management services ## Release History - 20 Feb 2025 at 09:16 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/006049-2025 ## Notice URLs - https://uk.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=90654&B=SYPA - https://uk.eu-supply.com/ctm/Company/CompanyInformation/Index/104506 - https://www.sypensions.org.uk/ ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-04e498. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-04e498.json.