March 28, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

On behalf of Royal London, Royal London Asset Management announced it has acquired 21,000 acres of high-quality farmland through a joint venture with South Yorkshire Pension Authority (SYPA) for £260 million (US$328.75 million). 

As part of the deal, the farmland’s management company Waldersey Farms has also been acquired, along with tenant relationships with other UK businesses that will retain management of the majority of the land.

“South Yorkshire Pension Authority has curated the estate and Waldersey Farms from 400 acres over the last 40 years, establishing itself as one of the UK’s largest food producers,” said Cllr Jayne Dunn, chair, SYPA.  

“As farming moves into a new era of increased complexity, meeting the combined demands of food security, localism, biodiversity enhancement, climate change and more, we felt that the opportunity to introduce a new partner able to more actively manage the estate and fully realize its potential was in both the best interests of the holding and the longer term interest of our scheme members.”

Royal London Asset Management is a key player in the UK commercial property market across six segments: offices, retail, industrial, logistics, residential, healthcare, and alternatives. This transaction represents not only the first investment made by Royal London Asset Management in agriculture and natural capital, but is the largest farmland deal to happen in the UK. 

Mark Evans, head of property, Royal London Asset Management, commented, “Working alongside South Yorkshire Pension Authority to invest into the largest farming transaction by capital value in the UK has provided an exceptional opportunity to launch our natural capital strategy.”

“It will allow us to explore market leading sustainable practices on a predominantly directly controlled estate and at meaningful scale, whilst aligning with our long-term focus as a mutual business.”

Located across Cambridgeshire and Lincolnshire, the acquired farmland presents a highly versatile and diverse portfolio with the potential to increase productivity while able to carry forward new environmental strategies. 

Royal London Asset Management stated that it will employ innovation, technology, and the use of sustainable and regenerative farming practices to reduce environmental impacts, while investing in nature-based solutions such as increasing soil organic matter, lowland peatland restoration, hedgerow afforestation, habitat banking, storage and filtration schemes for better water quality, and renewable energy. 

In time, by integrating lower-carbon agricultural methods on this major landholding, Royal London Asset Management believes that this acquisition, which aligns with its forward-thinking approach, can contribute toward its net zero goals, and act to “future proof” its wide range of assets through sustainable investment. 

“At Royal London Asset Management Property, we are constantly seeking assets that are resilient to future uncertainties,” said Evans. “By diversifying into this emerging institutional real asset sector, we show our commitment to investing in assets that will benefit future generations.”

Further, for Royal London Asset Management, there exists future scope to become a stakeholder in debates on key issues such as food, carbon, biodiversity, and the enhancement of nutritional quality. 

“Royal London Asset Management is passionate about responsible investment,” concluded Evans. “We’re supporting our Group Purpose of ‘Protecting today, investing in tomorrow. Together we are mutually responsible’.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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