UK affordable housing investor Funding Affordable Homes (FAH) has bought a £28.5m (€31.5m) development in London.

The social impact company has invested in the Island Point development south of Canary Wharf in London’s Docklands from City Pride.

Island Point, located close to the River Thames at 443-451 Westferry Road, comprises 173 affordable homes, made up of 109 social rented, 33 Affordable rented and 31 shared ownership homes.

Paul Munday, fund manager of FAH, said: “This acquisition enables us to support the new build of affordable housing in Tower Hamlets, one of London’s poorest boroughs, where there is an acute need for more affordable housing.

“Island Point is a high-quality and well-located development, providing a good mix of tenures and bedroom sizes. Significantly, two-thirds of the homes are social rent and benefit those on the lowest incomes.

The FAH fund’s property adviser is Edmond de Rothschild Real Estate Investment Management.

James Whidborne, head of residential fund management UK at Edmond de Rothschild Real Estate Investment Management, said: “The asset is a milestone for Funding Affordable Homes, representing close to 20% of its rental income and providing a solid platform from which we now aim to raise additional capital.

“Given the merits of the sector from both a social impact and returns perspective, our aspirations are to now grow the fund to in excess of £500m within two years”.

FAH has so far bought, or committed to acquire, around £170m of socially-beneficial housing projects in London, the east and south of England and other parts of the country.

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