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Railpen in Cambridge: investing for the future

Feb 6, 2025
As part of its investment in property, Railpen, the investment and administration manager of the railways pension schemes, is developing a cluster of sites in Cambridge, UK.

This case study explores how Railpen is investing in real assets in Cambridge, as an opportunity to deliver attractive long-term returns for your pension.

Paying pensions is at the heart of investment decisions

The money that you as members and your employers pay in to the Fund is pooled together and invested into a wide variety of opportunities, companies and brands. These have been carefully selected to generate financial returns in line with the Trustee's mission to 'pay members' pensions securely, affordable and sustainably'. These investments are managed and invested in-house by Railpen's award-winning investment team.

We take a diverse approach to investing, and invest in a mix of:

  • Financial assets – like stocks and bonds, in public and private markets
  • Real assets – like renewable energy, infrastructure, and property.
Investing in real assets provides an opportunity for us to deliver attractive long-term returns for your pension.

When it comes to property investment, we invest your pension both abroad and in the UK. Currently, 33% of the assets we manage (£11 billion) are invested in UK assets, £841m of which is across infrastructure, energy, innovative sectors, and community developments.

Investments work differently for members who save more towards their pension with both or either one of the two Additional Voluntary Contribution arrangements, BRASS and AVC Extra.

The money that’s paid in is invested into funds – the aim being to increase members’ savings over time. Members can choose to have their investments managed for them in one of our Lifestyle strategies. Alternatively, members can make their own investment decisions and choose from a range of 7 funds. They may choose a fund based on their attitude to risk, or their personal values. Members can choose a mix of Lifestyle strategies and investment funds if they wish.

Investing in high-quality developments

Railpen’s investments in Cambridge are a great example of place-based investments, which aim to secure financial returns for our members, and have a positive local impact too.

Cambridge is renowned for science and innovation, having been at the forefront of research and development for a century. It is also a hub for global businesses in STEM-related industries (Science, Technology, Engineering and Mathematics) and home to one of the world’s best universities, which together contribute tens of billions to the UK economy – with the potential to grow even further in the years to come. 

Our investment in Cambridge centres around creating a cluster of high-quality spaces, including sustainable offices, laboratories and research facilities and residential space.

CGI of Botanic Place
Botanic Place – inspired by Cambridge University Botanic Gardens, a highly sustainable workspace with a nature-focused design. 

CGI of Mill Yard
Mill Yard – a largely car-free development of sustainable workspaces, residential accommodation, eateries, bars, creche and fitness centre, all within walking distance of Cambridge station. At the heart will be a public park with hedgehog-friendly habitats and edible planting. 

CGI of The Beehive
The Beehive – an innovation park with space for businesses, laboratories, curated gardens and retail outlets.

Cambridge retail park
Cambridge Retail Park – expansion of Cambridge’s premier retail park to feature new retail and leisure tenants, including a restaurant and retail warehouse. 

Bracks Solar Farm
Just outside of Cambridge, Bracks Solar Farm is a renewable energy investment that powers the equivalent of 8,000 homes. This energy is not only clean but generated in England, which helps us reach our net-zero emissions targets and supports the UK economy.

How these investments help secure members’ future

Because the Fund is open to new members, we take a long-term approach to investing, being mindful that an 18-year-old who joins the BTP today may not retire for 35 years or more.

This gives us a very long-term mindset and means we’re able to take investment opportunities over multiple decades to help protect – and enhance – the long-term value of your pension savings.

Investment in physical things like land, property, infrastructure and natural resources, are an important part of this strategy.

The developments in Cambridge will place Railpen at the heart of the city’s ambitions across sciences and technology. We anticipate huge growth in both sectors, which could bring significant long-term benefits for members’ pensions.

Find out more

For more details about the Cambridge developments specifically, visit railpencambridge.com.

You can find more general information about where we invest, and why, on the Railpen website at railpen.com/investing.