CBRE Investment Management has secured two new LGPS investors for its UK Affordable Housing Fund (AHF). Tyne and Wear Pension Fund and Scottish Borders Council Pension Fund bring the total number of LGPS subscribers to nine, with 23 investors overall and total equity commitments of over €569m (£500m).
AHF invests in social and affordable rented housing and affordable-ownership properties delivering measurable social outcomes. It was one of the first UK unlisted funds to bring institutional client capital into affordable housing to deliver social impact. The Fund has a pipeline of c.€455m (£400m) of schemes both in development and completed. These are anticipated to provide in excess 2,098 homes, potentially housing in excess of 5,600 people.
Andrew Davey, Head of Liability Aware Strategies UK and Fund Manager for AHF at CBRE Investment Management, said: “AHF offers investors the opportunity to access an attractive risk adjusted return whilst achieving their impact goals. Independently audited performance against the funds impact objectives is critical and provides the bedrock of our investment process. Transparency and proven track record of performance against this framework for our investors has been key to the funds’ success thus far.”