A UK housing fund backed by seven local authority pension funds has added over 100 new homes to its portfolio.

Hearthstone Residential Fund 1 (HRF1) has invested £31m (€35m) across UK regions to buy the assets in three separate deals, the manager Hearthstone Investment Management announced.

The properties, including a mix of low-rise apartment blocks and clusters of houses, are all located in areas with good local infrastructure but where there has been a shortage of good quality rented housing stock.

These new build properties will be completed in tranches throughout 2019, adding to the fund’s existing assets in a number of targeted locations.

The ten-year HRF1 fund announced its final closing earlier this year, with commitments of over £200m from seven UK local authority pension funds – Merseyside Pension Fund, Tyne and Wear Pension Fund, Derbyshire Pension Fund, Nottinghamshire Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund, and West Midlands Pension Fund.

The properties are located in Greater Manchester, Nottinghamshire, The Midlands, Birmingham and Southern England

Richard Otten, partner and director of asset management at Hearthstone Investment Management, said: “These latest acquisitions strengthen our presence in well-connected and economically active hubs such as Nottingham, Greater Manchester and Birmingham, and other vibrant locations in southern England.

“The deals reinforce our ability to source and acquire quality housing assets in areas where tenants can benefit from easy access to their workplace, as well as being part of a strong and well-served local community.”