Two Local Government Pension Scheme (LGPS) investors have invested in the UK Affordable Housing Fund (AHF), which focuses on social and affordable rented housing.
The decision by Tyne and Wear Pension Fund and Scottish Borders Council Pension Fund to invest in the CBRE Investment Management-run fund brings the total number of LGPS subscribers to nine.
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, which has 23 investors and total equity commitments of over £500m, has a pipeline of about £400m of schemes both in development and completed. These are anticipated to provide in excess 2,098 homes.
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.'
