Aviva Investors makes £80m UK social housing investment

Aviva Investors has made an £80m (€91.5m) investment in UK social housing provider Cross Keys Homes (CKH).

The global asset management business of insurer Aviva said the capital will be used by the Cambridgeshire-based housing association to support its ongoing growth and development plans.

CKH’s development plans include the building of its flagship scheme in Northminster, which will provide 315 affordable homes.

Munawer Shafi, head of structured and private debt at Aviva Investors, said: “We are very pleased to have completed this private placement with Cross Keys Homes and to have increased our investment into the development of more social housing projects across the UK.

“Social housing remains an important area of investment within our private-debt business, not only for the risk-adjusted returns it offers investors, but also its ability to create positive outcomes at a societal level. It is this dual ability to provide robust cashflows whilst also having an impact within local communities which makes it an attractive area for us to increase our exposure to and our clients are, quite rightly, recognising its value and importance.”

Aviva Investors is making the investment on behalf of Aviva UK Life’s annuity business. The asset manager has so far invested almost £360m in social housing providers across the UK in 2022.

Marcus Mollan, annuity asset origination director at Aviva UK Life, said: “As one of the UK’s largest insurers, we are aware of the power our investment activities can have. Therefore, we believe it’s vitally important we are able to access investments which will not only provide us with sufficient investment performance to meet ongoing liabilities, but that can also reflect our desire to have a positive wider impact, whether at a societal, environmental or sustainability level.

“We are pleased to further our support for the UK’s social housing sector and its continued provision of homes across the country.”

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