Savills Investment Management has announced the first close of the Savills IM Simply Affordable Homes fund, raising £123 mln (€143 mln).
The strategy has five founding investors: Samsung Life Insurance, London CIV, Big Society Capital, Schroder BSC Social Impact Trust and Savills.
The fund will invest in and manage a diversified portfolio of affordable housing, comprising both affordable and social-rent homes as well as shared-ownership homes, in an open-ended core product designed for institutional investors seeking a low risk, inflation-linked income stream while also delivering social impact.
It will also facilitate the delivery of new homes and through strategic partnerships with developers and housebuilders.
Alex Jeffrey, Chief Executive, Savills IM, commented: 'The UK faces serious housing challenges, especially with regard to affordability, and this fund aims to help address this. Investing in UK affordable housing provides opportunities for institutional capital to meet commitments to socially responsible investing and make a significant and positive impact, whilst achieving attractive returns.'
