Man Group has secured more than £360m (€416m) to support the delivery of affordable and energy-efficient housing in England, with UK local authority pension funds Oxfordshire and Wiltshire among the primary investors.
The open-ended Man RI Community Housing Fund 3 (CoHo 3) surpassed its initial £300m target to reach £362m in investor commitments, the global alternative investment manager said in a statement.
CoHo 3 is the group’s third community housing strategy.
Josh Brewer, responsible investment officer at Oxfordshire Pension Fund, said the fund had finalised an investment of £55m into the Man Group Community Housing Fund “to build affordable homes in Oxfordshire and across the country over the next few years”.
“Investing in the construction of new affordable homes helps tackle the housing shortage across the county, while targeting stable, long-term returns to support pension funding,” Brewer added.
Thobeka Kellett, senior investment analyst at Wiltshire Pension Fund, said: “As an investor in CoHo 1, we’ve seen the team deliver high-quality, affordable homes even in challenging market conditions.
“That track record, alongside its focus on energy efficiency, its commitment to residents’ financial sustainability and its operational carbon reduction targets, made it a compelling investment for us.”
Shamez Alibhai, managing director and head of community housing at Man Group, said: “[The fund] surpassing £362m is a signal that institutional investors increasingly see affordable housing as an asset class that is designed to meet income needs while addressing one of the UK’s most pressing social challenges.
“The government’s Mansion House agenda supports a clear framework for institutional capital to play its part, and our job is to ensure that capital translates into homes that people can afford to live in and create a positive social and environmental impact.”
The fund targets 90% affordable home across its portfolio, with a mix of social rent, affordable rent and shared ownership tenures, Man Group said.
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