CBRE UK affordable housing fund (AHF), a fund sponsored by CBRE Investment Management, has committed capital to acquire and develop 522 affordable rental homes through forward funding and forward commitment transactions in the last 12 months.
Andrew Davey, head of liability matching solutions and affordable housing, CBRE IM, commented: 'The shortage of affordable homes in the UK is well documented and we believe that AHF is one solution to use institutional capital to fund the shortfall of affordable and sustainable housing.
'Many investors have their own social impact goals and as AHF is independently audited, it provides investors with the assurance that social impact objectives are met alongside a financial return. With our proven capabilities to acquire and develop new homes, we look forward to continuing our growth trajectory in the year ahead.'
Transaction highlights have included funding 294 regulated rent homes at Wood Wharf, part of the Canary Wharf Group residential development in Central London, and delivering 67 regulated rent and 11 shared ownership homes across two sites in Exning, Newmarket and Weston, Spalding.
The fund has also provided 54 regulated rent and 18 shared ownership homes in Burgess Hill, Sussex, and added 14 regulated rent and 14 shared ownership homes at Fugglestone in Salisbury to the portfolio of 185 homes at this site. A further 48 regulated rent and two shared ownership units at Wellington Gate, Wantage have also been funded.
AHF invests across regulated rent, local affordable rent and affordable-ownership properties delivering measurable social outcomes. It was one of the first UK unlisted funds to bring institutional client capital into affordable housing to deliver social impact.
Through the life of the fund, circa £600 mln (€700 mln) has been allocated and AHF owns 2,432 affordable homes, of which some are in the most deprived areas in the UK. With the recent capital committed to the provision of new homes, AHF has the potential to house approximately 7,500 people.
As of Q4 2023, equity commitments are £670.5 mln with a total of 22 investors, of which nine are Local Government Pension Scheme (LGPS) subscribers.
