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UK pension fund Nest agrees tie-up to invest up to £1bn in build-to-rent

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The UK’s state-backed pension scheme has agreed a tie-up with insurer Legal & General and Dutch pension fund manager PGGM to invest up to £1bn in build-to-rent properties, in a deal hailed by the UK government as an example of how the country’s retirement savings can be directed towards its homebuilding effort.

The groups are today announcing a partnership with an initial £350mn commitment of combined investment, expected to grow to £1bn in the coming years, to build and manage rental properties on city-centre brownfield sites. It expands on an existing joint initiative between the UK insurer and the Dutch group.

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“We can see there’s a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes,” said Elizabeth Fernando, chief investment officer at Nest, the state-backed UK workplace pension fund, which now has assets of £43bn from its 13mn savers. 

The tie-up comes as the UK government seeks to unlock billions of pounds of investment from the country’s pension funds to boost the economy.

In July, the government announced the first part of its pensions review. Policymakers have long sought to encourage more pension investment in areas such as infrastructure and housebuilding. 

Pensions minister Emma Reynolds
Pensions minister Emma Reynolds said the tie-up would allow the sector ‘to contribute to our communities’ © Getty Images

UK pensions minister Emma Reynolds said the announcement “highlights the opportunities for our pensions sector to contribute to our communities and grow the economy”. 

“By building more properties, we can extend to our [scheme] members a great investment opportunity while helping to meet this demand and bolster the rental market,” said Nest’s Fernando.

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Increasingly, the focus is on so-called defined contribution pension schemes, which are now the mainstream offering for private sector workers, and where the investment risk sits with the saver.

Nest, a DC scheme, was established to support the 2012 auto-enrolment reform that required employers to enrol all eligible workers into a workplace pension scheme. 

After feedback from its members saying more than half were not sure how much of their savings were invested domestically, it plans to publish a quarterly summary.

L&G has plugged £3bn of capital into the build-to-rent sector, creating more than 10,000 rental homes since it began a partnership with PGGM eight years ago. 

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The groups said locations for the investment had already been identified but did not name them. PGGM said it would generate stable financial returns for its client PFZW, a pension scheme for healthcare workers.

L&G chief executive António Simões said the latest deal was a “strong step forward in putting pensions to work” and he highlighted the significant gap between housing supply and demand. “Institutional investment has an important role to play, and we expect investor demand in the UK’s build-to-rent sector to continue to grow,” he added.

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Exploring Four Seasons Resort Tamarindo

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Photo courtesy of Four Seasons Hotels & Resorts

Hidden along the untouched shores of Mexico’s Costalegre, Four Seasons Resort Tamarindo is a world onto itself, where luxury coexists with nature’s most pristine wonders. While the Four Seasons brand is synonymous with opulence, Four Seasons Resort Tamarindo is more than just a luxury hotel; it’s a place where time slows down, and every moment is an experience that lingers long after you’ve returned home. A unique sanctuary where luxury and nature are seamlessly intertwined, the resort is surrounded by 3,000 acres of untouched tropical jungle and pristine beaches, creating experiences that invite guests to disconnect from the world and fully immerse into a landscape of extraordinary beauty. Whether you’re drawn to the allure of secluded luxury villas with breathtaking ocean views, extraordinary culinary delights celebrating Mexico’s rich heritage, or a journey into the natural world, Four Seasons Resort Tamarindo offers a transformative experience where each detail is thoughtfully designed to inspire and rejuvenate.

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Photo courtesy of Four Seasons Hotels & Resorts

At Four Seasons Resort Tamarindo, the luxurious accommodations are more than just a place to rest — they are private sanctuaries that seamlessly blend indoor and outdoor living. Whether you choose a suite, beach house, or spacious villa, you can expect unparalleled comfort, privacy, and extraordinary views like none other. The scene is set to the sound of waves crashing against the shore, while you step out onto your private terrace, and dip into your personal infinity pool with ever-changing vistas of the Pacific Ocean and lush hillsides serving as your backdrop. These accommodations are perfect for those who crave seclusion and serenity, but they’re also ideal for families and groups. Generously proportioned layouts are equipped with every modern amenity, ensuring that your stay is as comfortable as it is luxurious. A selection of villas and beach houses offer direct beach access, allowing you to feel the sand between your toes within moments. Each space is meticulously designed with floor-to-ceiling windows that frame the stunning ocean panoramas, creating a unique and harmonious connection with the natural surroundings.

Photo courtesy of Four Seasons Hotels & Resorts

The dining experiences at Four Seasons Resort Tamarindo are a celebration of Mexico’s vibrant culinary heritage, with each restaurant offering a unique and memorable journey for the senses. At Coyul, the focus is on farm-to-table cuisine, where Chef Elena Reygadas’ globally inspired dishes are crafted from fresh, local ingredients sourced from the resort’s own Rancho Ortega. The flavors are rich, authentic, and deeply connected to the land. Sal, perched on a cliff with panoramic ocean views, serves up the freshest seafood, where each meal is a tribute to the bounty of the Pacific. For a more relaxed vibe, Nacho offers a playful take on traditional Mexican street food, reimagined with a gourmet twist — including a taco tasting menu that gives foodies the chance to taste a surprisingly diverse range of regional tacos and libations from various parts of Mexico. Every restaurant at Four Seasons Resort Tamarindo is not just a place to dine but a venue for experiencing the soul of Mexican culture through its food. In addition to its restaurants, the resort offers a variety of private dining experiences that cater to every mood and occasion. Whether you’re enjoying a family barbecue at Majahua Beach, a romantic dinner at Nueve — the picturesque 9th hole of the resort’s ocean front golf course, or a picnic at Playa Dorada, every bespoke culinary experience is curated to perfection, and designed to be memorable.

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Photo courtesy of Four Seasons Hotels & Resorts

Foodies will appreciate the epicurean workshops led by Culinary Director Nicolas Piatti. These immersive experiences are not just about cooking; they’re about storytelling. Each workshop takes you deep into the heart of Mexican cuisine, exploring recipes passed down through generations and showcasing the unique produce grown at Rancho Ortega, the resort’s low-impact farm. Here, you’ll discover the soulful expressions of Mexico’s culinary traditions — including learning about organic corn from the Yucatán Peninsula and the harvesting of local sea salts. It’s an intimate and educational journey that connects you not only to the mission of the resort but also to the land and its people.

Photo courtesy of Four Seasons Hotels & Resorts

The fostering of a healthy mind, body, and spirit is central to the Four Seasons Resort Tamarindo experience. Your wellness journey begins the moment you set foot in the resort’s state-of-the-art gym and full-service luxury spa. Here is where you can engage in rigorous activities such as personalized pilates training, or simply unwind with a luxurious spa treatment. The spa, an architectural marvel and haven of relaxation, offers therapies that draw from ancient Mexican healing traditions, using natural ingredients sourced locally. Each treatment is designed to rejuvenate your body and soul, leaving you feeling renewed and balanced. Nature is part of the wellness journey, and one of the most extraordinary aspects of Four Seasons Resort Tamarindo is its deep connection to its natural surroundings. The resort offers guided hikes through its verdant jungle environs, led by resident biologists and researchers who are dedicated to preserving this unique ecosystem. As you walk through the lush foliage, you’ll experience the sights, sounds, and scents of the tropical forests, gaining a deeper understanding of the work being done to protect this precious environment. It’s a full sensory experience that leaves you feeling more connected to not only the natural world but also to yourself. 

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Photo courtesy of Four Seasons Hotels & Resorts

In a world that often feels disconnected, Four Seasons Tamarindo is more than just a luxury resort; it’s a sanctuary that offers a rare opportunity to slow down, reconnect with nature, and rediscover the luxury of simplicity. As a guest, you’re invited to be a part of this process, forming a deep connection to the environment and, in turn, rediscovering your own sense of balance. It’s an experience that inspires and energizes, leaving you with a profound sense of peace and a renewed appreciation for the beauty of this special corner of the world.

For more information please visit fourseasons.com/tamarindo

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FT view on Israel pager attack was blinkered

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A diplomatic agreement between Israel and Lebanon is preferable to outright war, but the FT missed the mark in its editorial, which criticised Israel for attacking thousands of Hizbollah members while they “went about their daily business” (“Israel’s reckless pager attack on Hizbollah”, FT View, September 19)

Hizbollah, a multi-faceted entity in Lebanese society, is a designated terrorist organisation under US and EU law. Its charter states its purpose as the “obliteration” of Israel, and the group’s “daily business” consists of indiscriminately targeting Israeli civilians, including 12 children killed in a strike on a football field in July, and the firing of thousands of rockets on Israeli towns since Hamas’s October 7 attack.

Israel, for its part, targeted elements supporting Hizbollah’s military wing, which is actively engaged in hostilities against Israel on a daily basis. An analysis of Israel’s actions should include this context.

Daniel Silverberg
Senior Adjunct Fellow, Center for New American Security, Washington, DC, US

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Europe’s capital markets must make it easier to issue equity

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The EU’s competitiveness has been the talk of the continent (“Draghi hopes to save Europe from itself”, Opinion, September 18).

Former and current prime ministers, business leaders and heads of the EU’s largest investment funds, among other prominent voices, are lamenting what has been termed a “competitive crisis”.

EU leaders are right to focus on this issue. Europe is falling behind.

As leaders look for real solutions to these real challenges, they should take a page from the book of those running US capital markets and get rid of the EU’s antiquated shareholder rights equity issuance rules.

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The US method of raising equity capital through open offerings is faster and more efficient, and it ultimately better serves shareholders.

Conversely, the EU’s stringent shareholder rights rules, while designed to protect investors, often impede companies’ timely access to capital.

As chief executive of a fund manager I know that in today’s fast-paced global economy cost, speed and access to capital is critical.

Rights offerings often succeed not because of the companies’ attractiveness — for example, a perception that they are strong and well managed — but because of wide discounts offered that are consequently coercive to shareholders who didn’t want to absorb dilution.

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That’s anathema to a competitive market. The prevalence of deeply discounted, defensive rights issues is one of the reasons why European markets have lagged behind the US, in our view.

By modernising these rules, the EU could create a more dynamic and responsive market environment. Simplifying the equity issuance process would make it easier for European companies to compete on the global stage, attracting more investment into the region through the improved access to and cost of capital. Investors are more likely to put their money into markets where companies can act swiftly and decisively.

Moreover, reforming these regulations would send a strong signal that the EU is committed to fostering a competitive and innovation-friendly economy via vibrant capital markets. This could help reverse the current trend of European companies being overshadowed by their American and Asian counterparts.

Joseph Harvey
Chief Executive, Cohen & Steers, New York, NY, US

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Algarve Mansion Transformed Into Beach-side Bela Vista Hotel

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Columbia Hillen

Every tile tells a story.

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Or at least that’s the situation at the 5-star Bela Vista Hotel & Spa in Portimão on Portugal’s Algarve coast.

Century-old hand-painted tiles adorn the walls of this 38-room hotel, none more so than on the ornate wooden staircase leading up to the bedrooms. Here, a series of intricately designed tiles illustrate one of Portugal’s most respected books, The Lusiads, an epic poem written by Luis Vaz de Camoes about Portugal’s ‘golden age’ of discovery.

Columbia Hillen

Elsewhere, an aptly-named ‘tile room’ depicts the arrival in Brazil by 16th century explorer, Vasco da Gama, while religious scenes such as the Last Supper are illustrated in other rooms.

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The intricate tile work throughout the hotel is the legacy of the original owners of this 1908 building, once a stately family home. Only in 1934 was it transformed into a hotel, now expanded to 38 rooms, 10 in the main building, 21 in what are termed  ‘garden rooms’ and seven in the ‘blue house,’ both on the same grounds. 

Columbia Hillen

Beautiful tile work is not the only impressive artistic feature of Bela Vista. Ceilings are carved from Brazilwood, a rare variety now protected. There is also a vintage piano in the main lobby dating from 1855.

Columbia Hillen

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Bela Vista, as the name suggests, occupies an envious position overlooking the ocean and Praia da Rocha (Beach of the Rocks). In many ways, the hotel is reminiscent of the 1950s Amalfi coast, a white ‘ivory tower’ like structure insulated from the busy hubbub of the streets just beyond its sturdy iron-wrought gates and with an interior design bright with colors, a vivid blue and white on chairs and cupboards and sunny yellow bedspreads.

Columbia Hillen

Our room, 102, was refreshingly decorated in hues of blue, yellow and white with tiles featuring a floral motif covering part of the walls. It also featured a wood-floored balcony with whicker armchairs overlooking the long stretch of beach. 

Columbia Hillen

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Even the bathroom, with tub and shower and l’Occitane and Guerlain toiletries, granted clear views over the beach and ocean. A floor-to ceiling linen curtain kept the room dark at night. Two armchairs and a coffee table, a bench and chair and a wall TV were among room furnishings.

Chef Joao Oliveira. Photo by Columbia Hillen

Dining highlight of a stay at this hotel is its Michelin star restaurant, Vista.

Guests are granted a short pre-dinner tour of the basement kitchen where they meet executive chef Joao Oliveira from Porto and his team of seven chefs, as well as a visit to the wine cellar. 

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Columbia Hillen

The kitchen renovated five years ago has a special chef’s table for two for unique dining experiences.

Beside the kitchen is a wine cellar with, according to sommelier, Tiago Samarro, 800 different vintages, most from Portugal but also from countries such as Spain, New Zealand and Italy, all kept under constant room temperature. The oldest wine is a mid-1960s vintage.

Columbia Hillen

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A ‘tactile’ menu, including grains of sand affixed to it, is provided to guests, created by local artist, Inês Barracha, followed by a jigsaw-like miniature map of three Algarvian regions indicating from which products for the restaurant’s 11-course pescatarian tasting menu are sourced.

Our dinner began with a veritable explosion of taste, a marble-size, lime-green ball filled with a liquid blend of horseradish, ginger and apple that simply blasted flavour throughout my mouth.

Columbia Hillen

Innovative dishes that followed included violet shrimp (camarao listado), a thin sheet of rice flour with the shell of a shrimp imprinted on it.

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Another was a tomato dish comprising marinated cherry tomatoes from Quinta Das Castelhanas, a local farm, three tomato gels flavored with yuzu, camomile and Moroccan lemon combined with garlic flowers and capuchinha (aquatic leaves) and a sprinkling of ‘tomato water,’ all sprayed with camomile-infused vinegar.

A langoustine from Sagres slightly roasted and decorated with flowers of pickled cauliflower and an emulsion of white grape was also among the culinary offerings.

Columbia Hillen

Our dinner also included turbot and anchovies and delicious sourdough bread with olive oil from the hotel owners’ grove, Daniel Proença de Carvalho (DPC).

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Even the butter on the menu is far from standard fare – being a blend of goat, cow and sheep milk, according to Neuza, our gastronomic guide for the evening.

Columbia Hillen

A second restaurant is the Bistro. In season, it is outside on a poolside patio facing the beach and sea; offseason, in the elegant ambience of the bar area with a mosaic floor and what can best be described as three-dimensional wall paintings – some featuring parakeets perched on keys in a cage; others, a system of mirrors that seemed quite nautical on a background of broken coconut shells. 

Columbia Hillen

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A furnishing highlight is the ceiling of Brazilwood beams, deftly painted in a leaf and grape filigree.

Here we enjoyed Portuguese cod fish cakes, fresh cheese, mushrooms and thyme ravioli with celery broth and extra virgin olive oil; langoustine and scallops carpaccio with champagne and Ossetra caviar designed as a rosette reminiscent of a cactus flower like the ones on the hills nearby, formed by thin petals of langoustine and scallops, layered, with a pistil of caviar and surrounded by a smooth, champaign and butter sauce. 

Columbia Hillen

A gym, and outdoor swimming pool surrounded by tall swaying palm trees and a spa offer leisure opportunities.

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Reason pension insurers are on to a good thing

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Banker all-nighters create productivity paradox

John Plender is right to draw attention to the growing preference of defined benefit scheme trustees and the schemes’ employer sponsors to insure their pension obligations (“The lucrative pension fund transfer trend needs urgent scrutiny”, Opinion, September 17). However, the primary reason for this trend has, perhaps, been overlooked.

Beneficiaries of a defined benefit pension rely on the strength of their former employer’s corporate covenant being sufficient to meet, in all circumstances, the “promise to pay” implicit in a DB pension.

Conversely, following a transfer to an insurer, this promise is underpinned by the solvency capital requirement and the Financial Services Compensation Scheme. In other words, a “promise” becomes a closely-regulated commitment. Hence the market’s rapid growth now that this protection is evidently affordable.

Mark Wood
Chairman, PensionBee, London SE1, UK

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Diplomacy can avert the ineluctability of conflict

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Banker all-nighters create productivity paradox

Reading your editorial on the situation in the Middle East is rather depressing, for two reasons (“Israel’s reckless pager attack on Hizbollah”, FT View, September 19).

First, it is absolutely accurate to describe the seriousness of the situation and how it could further degenerate into an all-out war, taking an appalling toll in terms of casualties, displaced peoples and destruction.

Second, the editorial seems to follow an inescapable logic, although it ends with a prudent hint of hope in the US plan. Unfortunately, this applies to other conflicts around the world too.

The sense of ineluctability and resignation appears widespread among governments, at the UN — whose main objective is averting the scourge of war — and at the EU, which was established to promote peace and stability through economic integration and prosperity.

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Diplomacy and the peaceful settlement of disputes seem to have been dismissed in favour of a race towards armament and militarisation. This is not to say that governments and relevant international organisations should not upgrade, test and strengthen their military defensive capacities. Obviously, they have to take such steps, and we are grateful they do so. But they cannot afford to neglect any suitable peaceful means to prevent and defuse international conflicts, however difficult and complex the task may be.

Needless to say, a diplomatic solution to the crises in the Middle East — or in Ukraine or elsewhere — unavoidably requires, from the parties involved, a willingness to make mutual concessions and sacrifices, and from any mediator or broker both vision and perseverance. Territorial disputes, individual criminal responsibilities, liability for the damages caused throughout the crisis, reconciliation and reconstruction are all formidable challenges but not inexorably insurmountable obstacles.

Diplomacy cannot surrender and must claim and honour its role.

Tarcisio Gazzini
Professor of International Law, University of Padua, Veneto, Italy

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