CBRE Investment Management’s UK affordable housing fund has added 522 rental homes to its portfolio.
The CBRE UK Affordable Housing Fund (AHF) has acquired the affordable homes through forward funding and forward commitment transactions in the last 12 months.
The transactions include funding 294 regulated rent homes at Wood Wharf, part of the Canary Wharf Group residential development in Central London; delivering 67 regulated rent and 11 shared ownership homes across two sites in Exning, Newmarket and Weston, Spalding; and providing 54 regulated rent and 18 shared ownership homes in Burgess Hill, Sussex.
The transactions also include 14 regulated rent and 14 shared ownership homes at Fugglestone in Salisbury to the portfolio of 185 homes at this site and 48 regulated rent and two shared ownership units at Wellington Gate, Wantage.
Andrew Davey, the head of liability matching solutions and affordable housing at CBRE IM, said: “The shortage of affordable homes in the UK is well documented and we believe that AHF is one solution to use institutional capital to fund the shortfall of affordable and sustainable housing.
“Many investors have their own social impact goals and as AHF is independently audited, it provides investors with the assurance that social impact objectives are met alongside a financial return. With our proven capabilities to acquire and develop new homes, we look forward to continuing our growth trajectory in the year ahead.”
CBRE UK AHF has so far allocated around £600m and owns 2,432 affordable homes. As of the fourth quarter of 2023, the fund had £670.5m in capital commitments from 22 investors. Nine of these investors were local government pension schemes.
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