Legal & General (L&G) is providing an additional £85 mln (€101 mln) in financing to Anchor, the UK's largest provider of housing and care for older adults.
This brings L&G's Asset Management division’s total private credit investment in Anchor to £100 mln (€119 mln).
The new funding, structured as a 15-year bullet senior secured note, will primarily be used to develop affordable, energy-efficient homes. Anchor plans to build an average of at least 500 homes per year over the next decade.
L&G and Anchor have a longstanding partnership dating back to 2014. The latest investment builds upon a previous funding round for Anchor completed in February 2024. It also follows the recent launch of the L&G Affordable Housing Fund in July 2024, focused on investing in high-quality, affordable rental and shared ownership housing in areas with significant needs.
Steven Bolton, head of Corporate Private Credit, Europe, L&G Asset Management, said: ‘We believe institutional investment can play an important role in helping to address societal challenges, and organisations like Anchor provide an enormous contribution in terms of social value. In the UK, we urgently need to drive up the delivery of all types of homes, across all tenures. As well as a housing shortage, affordability proves challenging, so funding the delivery of energy efficient and affordable homes is ever more important.’
Amanda Holgate, CFO, Anchor, commented: ‘There is a strong underlying demand for older people’s housing and care. Our development strategy is concentrated where the need is greatest and the supply least, namely social and affordable housing, extra care housing and care homes.’
Scott Douglas, director – Capital Markets at Centrus, added: 'We are delighted to have arranged the £100 mln bilateral shelf facility between L&G and Anchor, and are pleased to see the relationship go from strength-to-strength based on strong alignment of core values and objectives.’
Anchor is the largest not-for-profit provider of housing and care services for older adults in England. They offer a wide range of options, including over 35,500 social rented homes, 12,500 homeownership properties, and 120 care homes.
Anchor serves more than 65,000 residents across 85% of local authority areas in England, operating from nearly 1,700 locations.
