Investment manager Octopus Investments has secured a £150 mln (€178 mln) investment for its Affordable Housing Fund from local government pension scheme investors.
The funds come from Avon (£50 mln), Gloucestershire (£50 mln), Devon (£40 mln), and Clwyd (£10 mln).
This latest investment follows the fund's initial £60 mln (€71 mln) raise from London CIV and Better Society Capital in December 2023.
The additional capital will be used to create affordable housing across the UK, with a focus on specific geographic areas through co-investments with LGPS partners.
Jack Burnham, head of Affordable Housing at Octopus, commented: ‘We know there are a number of locally interested investors who are looking for opportunities to deploy capital into funds that can provide specific social impact to their local areas. We think this is an approach that should be embraced and are thrilled to be working with Avon, Gloucestershire, Devon and Clwyd Pension Funds to help support them either deliver affordable homes in their areas, or in other areas across the UK.’
Shaun Stephenson-McGall, chair of Avon Pension Fund Investment Panel, said: ‘We are delighted to invest £50 mln in affordable housing. This is broadly the equivalent of 250 new homes being built for up to 1,000 people. Critically at least 20% will be in the Avon region. The new-build properties will raise the supply of secure, affordable and energy-efficient homes, for those that need them most. This investment will help us meet our new net zero 2045 goal, while delivering attractive financial returns, to help us meet future pension promises.’
Phil Latham, head of Clwyd Pension Fund, added: ‘This collaboration matches our ambition of driving positive societal and environmental impact in the UK, while also fulfilling our fiduciary duty of achieving sustainable investment returns.’
The Fund prioritizes building highly energy-efficient homes that significantly reduce energy bills, while leveraging the expertise of Octopus Energy to create sustainable living spaces for residents.
