UK living sector-focused fund manager Thriving Investments has secured an initial £30m (€35.9m) from Greater Manchester Pension Fund (GMPF), Better Society Capital and Places For People for its newly launched essential-worker housing fund.
Thriving Investments said the New Avenue Living Greater Manchester Housing Fund, which aims to build a £200m portfolio over the next three years, also secured an initial £10m loan from the Greater Manchester Combined Authority (GMCA).
The fund will invest in 1,000 homes over the coming three years, using forward funding and forward purchases, with Touchstone Property Management managing the completed homes.
Cath Webster, CEO at Thriving Investments, said: “Far too many essential workers, who make a huge contribution to the UK economy and society, are struggling to secure long-term, quality, safe housing, which acts as a catalyst to employment, health and education, and is the foundation of strong communities.
“This new fund is our first essential-worker housing strategy in England and reflects the team’s expertise in finding solutions to the challenge the UK faces in delivering genuinely affordable rental properties, at scale, in critically undersupplied regions.”
Paul Dennett, deputy mayor for Greater Manchester and GMCA portfolio lead for Housing First, said: “This fund is a prime example of how we’re working together with the Greater Manchester Pension Fund and the private sector to tackle one of the biggest challenges facing our city-region – ensuring people have access to safe, decent and genuinely affordable homes.
“We know that far too many essential workers, the backbone of our communities, are being priced out of the places they serve. That’s simply not right.”
Dennett said the investment directly supports the government’s plan to boost housing supply and deliver fairer, more inclusive growth.
Greg Reed, CEO at Places For People, said: “There’s no silver bullet in tackling this housing crisis. We need to be agile and innovative and leverage opportunities that bring forward new housing schemes that cater to the needs of the communities we serve.
“This solution by Thriving Investments is another example of how we are disrupting the market to develop and nurture thriving communities. With Places For People’s foundations built in the North West, it is a natural fit for us to recommit ourselves to one of our heartlands with our investment into this fund.”
Councillor Eleanor Wills, chair of GMPF, said: “I am proud that the GMPF, alongside GMCA, is supporting Thriving Investments and its effort to deliver affordable essential worker housing in Greater Manchester.
“The strategy supports the government’s plan to provide much-needed affordable homes for hardworking families while ensuring strong, low-risk returns to secure the pensions of our members.”
Marie-Alix Prat, investment manager at Better Society Capital, said: “With cities becoming increasingly unaffordable, this investment seeks to provide new high-quality, affordable homes for essential workers in Greater Manchester, allowing them to live closer to their workplaces.
“We’re excited to collaborate with Thriving Investments, GMCA and our co-investors to implement this innovative funding model in Manchester, while also supporting Places For People in delivering more affordable homes.”
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