Legal & General’s early-stage investment arm, as part of a development partnership with Oxford University, is investing up to £4bn (€4.5) over the next ten years.

Legal & General said it has formed a 50:50 partnership with the University to develop homes for University staff and students, together with science and innovation districts in and around Oxford.

The UK insurer said, as funding and development partner for the University, its future cities business will provide the capital from Legal & General’s shareholder, annuity and LGIM-managed funds.

Professor Louise Richardson, vice-chancellor of the University of Oxford, said the venture will address some of the most pressing challenges facing the University today.

“We will build much-needed graduate accommodation, subsidised housing for University staff, and new science parks, where academic departments, University spin-outs and commercial partners can work together to create new companies as well as high-quality jobs.”

Nigel Wilson, CEO of Legal & General Group, said the partnership with Oxford University is leading the way in “bringing together dynamic cities and patient capital, creating great outcomes for long-term investors and for the cities themselves.

“Legal & General’s partnership with the University is a terrific example for cities across the globe to follow.”

John Cummins, managing director of Legal & General’s future cities business, said: This partnership is a unique opportunity for two large and long-term UK institutions to work together to address Oxford University’s, and indeed the city’s, future needs, enabling it to continue to be a centre of growth.”