Strathclyde Pension Fund has invested a further £20m (€22.7m) into an affordable housing investment fund set up by the Scottish government and PfP Capital.

Real estate fund manager PfP Capital said the additional capital from the UK local government pension scheme will help to the Mid-Market Rent (MMR) fund deliver the next phase of affordable homes-for-rent in Scotland.

The MMR fund has already delivered 511 homes to date in major Scottish cities with another 590 under development, the manager said.

Strathclyde Pension Fund’s initial commitment to MMR was made in 2020. The latest commitment lifts the pension fund’s total investment in the affordable housing fund to £45m.

MMR’s other investors include the Scottish National Investment Bank, Nationwide and Places for People Scotland.

William Kyle, MMR fund director for PfP Capital, said: “The continued support of Strathclyde Pension Fund is a testament to our strong credentials as a differentiated social-value fund manager with a singular strategy, track record of delivering successful schemes and communities, and the not-for-dividend group status enables PfP Capital’s profits to be recycled onwards for more social value via Places for People.

“Given our structure and approach, we believe we are uniquely placed to play a major role in helping to alleviate the chronic housing shortage in Scotland alongside our partners, and very much hope more institutional investors will join to accelerate this critical housing provision.”

Ian Jamison, investment manager at Strathclyde Pension Fund, said: “We are delighted to be increasing our commitment to PfP Capital’s pioneering New Avenue Living affordable housing strategy, via our direct impact portfolio.

“The strategy meets our requirement to achieve satisfactory, risk-adjusted financial returns alongside real social value through the development of additional, high-quality affordable homes in Scotland.”

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