East Riding pension fund has committed £20m (€25.4m) to land development group Lucent.

The commitment by the Yorkshire LGPS is the largest single UK institutional investment made to Lucent’s Strategic Land Fund, which invests in land for residential development.

The open-ended fund, a Luxembourg SICAV-SIF, typically identifies land for residential development prior to the granting of planning permission.

Lucent said East Riding’s commitment was “a vote of confidence” in its ability to generate returns.

The company said one of its largest schemes, Lincolnshire Lakes, had received outline planning permission to build 3,000 new homes.

The regeneration scheme will ultimately include double that amount.

Lucent is also developing the mixed-use Royal Pier Waterfront in Southampton in partnership with Morgan Sindall Investment Partners and a Local Investment Partnership with Allerdale Borough Council in Cumbria, both agreed in February.

Charles Flynn, Lucent Group founder and chief executive, said that while all UK political parties acknowledged the need to build more than 200,000 new homes annually to meet current demand, market forces were “set to strengthen”.

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