Legal & General has invested £252m in UK affordable housing in the UK – the largest direct investment by an institutional investors in the sector to date.
L&G bought a 4,000-unit portfolio let to Places for People Homes, for L&G Retirement, managed by Legal & General Capital.
Places for People Homes has signed a new, 50-year lease and will use the proceeds to build a further 7,000 homes over the next seven years.
Pete Gladwell, head of public sector partnerships at Legal & General Property, said: “This sizeable investment represents our determination to use institutional capital to achieve a step change in the provision of affordable and social housing in the UK.”
L&G recently agreed a £40m, 25-year debt facility to Thames Valley Housing Association.