A new co-investment vehicle between Cornwall Pension Fund and PGIM Real Estate’s UK Affordable Housing Fund is developing a single-family rental housing scheme in Cornwall.

The pension fund and PGIM Real Estate have acquired a site and provided forward funding for the development of the 67-unit single-family housing scheme, located in Tuckingmill, Camborne.

The investment is the first for the co-investment venture, launched last year to acquire, hold and manage affordably-let single-family rental housing in Cornwall.

The co-investment is one part of the Cornwall Local Impact portfolio, created for Cornwall Pension Fund by Brunel Pension Partnership, which aims to channel LGPS investment into affordable private rental housing and renewables in the English county. 

Brunel Pension Partnership manages £38bn (€35.8bn) investments for 10 local government pension schemes (LGPS), comprising Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset, Wiltshire and the Environment Agency.

Saskia Secker, senior portfolio analyst for private markets at Brunel Pension Partnership, said: “We are delighted to announce the first local affordable housing investment on behalf of the Cornwall Local Impact Portfolio. These 67 new homes in Camborne are a great example of sustainable brownfield regeneration on a site that has been empty for years.”

Oscar Kingsbury, portfolio manager of the LGPS-backed UK affordable housing strategy at PGIM Real Estate, said: “Whilst Cornwall is a popular tourist destination, it is also one of the most economically challenged regions in the country. There is significant demand for high-quality, energy-efficient housing, let at affordable rents.

“The aim of our co-investment with Cornwall Pension Fund is to help to alleviate the shortage of affordable rental accommodation in the region. The investment in Camborne will deliver much-needed housing for working people and families, whilst producing sustainable income for the co-investors. ”

Since its launch in December 2020, the UK affordable housing strategy has committed over £300m across 28 different housing schemes.

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