Hammersmith and Fulham Pension Fund (LBHF Pension) has invested £30m (€35m) in a UK affordable housing fund, managed by Man Group’s private markets investment business.
Man Global Private Markets (Man GPM) said LBHF Pension has backed Man GPM RI Community Housing Fund, fund seeking to raise £400m to invest in new affordable homes.
As reported recently, the newly launched fund received an undisclosed amount of capital commitments at its first close from investors including the Swansea and Strathclyde LGPS, Big Society Capital, the Schroder BSC Social Impact Trust and a £20m contribution Homes England.
Man GPM said its parent Man Group invested £10m of its own capital.
Shamez Alibhai, head of community housing and portfolio manager at Man GPM, said: “We are truly appreciative of the support from LBHF Pension’s and our other investors. LBHF’s investment is further evidence of strong appetite from institutional investors for opportunities within residential real estate and its ability as an asset class seeking to deliver long-term sustainable financial returns.
“Our investment strategy is based on ensuring affordability and accelerating the delivery of new homes in the communities in which we invest.”
Phil Triggs, tri-borough director of treasury and pensions (on behalf of LBHF Pension), said: “The Pension Fund committee members of the Hammersmith and Fulham Pension Fund have long been conscious of their role of ensuring excellent environmental, social and governance behaviours for the diversified portfolio of investments.
“LBHF’s commitment to the Man GPM Responsible Investment Community Housing Fund marks its first impact-focused real estate investment, and we are pleased to be at the forefront of a relatively new market, working with a manager who is focused on adding to the domestic housing stock while delivering an inflation-linked long-term return.”