An open-ended UK affordable housing fund managed by Octopus Investments has received a further £150m (€178m) from Avon, Gloucestershire, Devon and Clwyd local government pension schemes (LGPS).
Octopus said its Affordable Housing Fund (AHF) received £50m each from Avon and Gloucestershire as well as a £40m and £10m commitment from Devon and Clwyd pensions respectively.
In December last year, Octopus announced that London CIV, the asset pooling vehicle for the UK capital’s 32 public pension funds, was investing £50m in AHF at the fund’s first close. The fund also received an additional £10m from UK social impact investor Better Society Capital.
Octopus said the capital raised last year has now been fully allocated to affordable housing projects, including the 180 affordable homes acquired in May from Maidstone’s Golding Homes.
Jack Burnham, head of affordable housing at Octopus, said: “We know there are a number of locally interested investors who are looking for opportunities to deploy capital into funds that can provide specific social impact to their local areas.
“We think this is an approach that should be embraced and are thrilled to be working with Avon, Gloucestershire, Devon and Clwyd Pension Funds to help support them either deliver affordable homes in their areas, or in other areas across the UK.”
Shaun Stephenson-McGall, chair of the Avon pension fund investment panel, said: “We are delighted to invest £50m in affordable housing. This is broadly the equivalent of 250 new homes being built for up to 1,000 people. Critically at least 20% will be in the Avon region.
“The new-build properties will raise the supply of secure, affordable and energy-efficient homes, for those that need them most.”
Phil Latham, head of Clwyd Pension Fund, said: “Clwyd Pension Fund is delighted to partner with Octopus to deliver affordable housing across the UK.
“This collaboration matches our ambition of driving positive societal and environmental impact in the UK, while also fulfilling our fiduciary duty of achieving sustainable investment returns.”
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