The Universities Superannuation Scheme (USS) and Morgan Sindall Investments Limited (MSIL) have launched a joint venture targeting UK supported living.

The Supported Housing Investment Limited Partnership (SHIP) has £100m (€116.3m) to invest in the sector.

USS is providing 95% of the capital, with MSIL retaining a 5% stake and acting as asset, property, and portfolio manager, according to a statement from MSIL.

The venture may be doubled to £200m, depending on the market’s movement.

Graham Burnett, head of property at USS Investment Management, said the investor was following a strategy to build a “significant portfolio of properties producing long-term, stable returns”.

“With supported living an emerging asset class, we fully expect our investment to grow given the strong fundamentals and significant lack of supply within the sector,” he said.

SHIP will aim to deliver 500 purpose-built apartments to cater for vulnerable people with physical and learning disabilities, enabling them to live as independently as possible.  

Lisa Scenna, managing director of MSIL, said: “This investment makes the clear statement that specialist supported housing is here for the long-term as an established asset class within the UK’s social infrastructure investment arena.”

Last week, USS announced a separate partnership with Credit Suisse to invest in a portfolio of loans to asset management companies.