Schroders Capital’s Real Estate Impact Fund (SCREIF), which focuses on social inequality in the UK, has received a £50 mln (€60 mln) investment from Homes England, the government’s housing and regeneration agency.
The investment has been confirmed as part of a package of key measures announced by the UK’s Ministry of Housing, Communities and Local Government (sponsor of Homes England) and HM Treasury, following a roundtable hosted by the Chief Secretary to the Treasury, as part of the UK government’s programme of activities to support its International Investment Summit.
SCREIF is a real estate focused strategy with the dual aims of delivering a positive social and environmental impact in addition to securing appropriate risk adjusted returns for investors. Last month, the strategy became only the second real estate fund in the UK to receive approval from the Financial Conduct Authority to use the ‘Sustainability Impact’ label under SDR.
With a residential-led approach, the fund is predominantly focused on addressing the UK’s housing crisis, specifically, the shortage of social and affordable accommodation and the regeneration of town centres. The fund aims to ensure that its investments are made in accessible and resilient locations, with access to green space, public transport, schools and GPs.
Chris Santer, impact fund manager, Schroders Capital’s Real Estate team, said: 'This investment by Homes England is a clear indication of the absolutely vital role this fund is looking to play in the UK by delivering real and tangible change.
'Our homes, and the built environment around us, impact our daily lives. We believe this allocation from the public sector will be catalytic in unlocking further institutional investments, boosting broader confidence and interest in this key sector meaning the fund can enable more communities to thrive across the UK.'
Matthew Pennycook, housing and planning minister, said: 'Delivering 1.5 million new homes over five years will require significant investment, including through new models of public-private partnership.
'The contribution we are making today alongside Schroders will see investment directed toward building thousands of new homes and providing the social infrastructure, amenities, and services necessary to create thriving communities.'
Peter Denton, Homes England chief executive, added: 'This is a brilliant example of how public and private sector organisations can get behind a clear and common aim – namely supporting social justice and thriving communities.
'Our commitment aims to help spark deep and diverse market investment from a range of institutions. Fundamentally, this is about coming together to accelerate regeneration and the creation of affordable, high-quality homes within sustainable, thriving places that people, especially those in more deprived areas, want, need and deserve.'
