An open-ended UK affordable housing fund managed by Octopus Investments has received a further Β£150m (€178m) from Avon, Gloucestershire, Devon and Clwyd local government pension schemes (LGPS).

Octopus said its Affordable Housing Fund (AHF) received Β£50m each from Avon and Gloucestershire as well as commitments of Β£40m from Devon and Β£10m from Clwyd pensions.

In December last year, Octopus announced that London CIV, the asset-pooling vehicle for the UK capital’s 32 public pension funds, was investing Β£50m in AHF at the fund’s first close. The fund also received an additional Β£10m from UK social impact investor Better Society Capital.

Octopus said the capital raised last year has now been fully allocated to affordable housing projects, including the .

Jack Burnham, head of affordable housing at Octopus, said: β€œWe 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.

β€œWe 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 the Avon pension fund investment panel, said: β€œWe are delighted to invest Β£50m 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.

β€œThe new-build properties will raise the supply of secure, affordable and energy-efficient homes for those that need them most.” 

Phil Latham, head of Clwyd Pension Fund, said: β€œClwyd Pension Fund is delighted to partner with Octopus to deliver affordable housing across the UK.

β€œThis 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.”

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Raz joined the ΒιΆΉΣ³»­ editorial team in 2017 as news editor of ΒιΆΉΣ³»­ Real Assets. He has over 15 years of experience as a financial journalist, having worked for Dow Jones Newswires and The Wall Street Journal where he worked as an equities reporter covering corporate news. He later covered consumer finance and moved on to become a leisure reporter and helped manage the London corporate news and small-cap desk.View full Profile

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