Hammersmith and Fulham Pension Fund (LBHF Pension) has invested £30 million in the Man GPM RI Community Housing Fund.
The move demonstrates the growing interest among institutional investors not only in residential real estate and inflation-linked investments, but investment opportunities that target positive social and environmental outcomes in addition to delivering financial returns.
The fund focuses on providing new, high-quality housing that is affordable for those who earn less than the median income in the UK. This includes key workers and young families.
It will offer multiple rental and ownership tenures, with a strong focus on creating sustainable communities.
“The pension fund committee members of the Hammersmith and Fulham Pension Fund have long been conscious of their role of ensuring excellent environmental, social and governance behaviours for the diversified portfolio of investments,” says Phil Triggs, tri-borough director of treasury and pensions on behalf of the pension fund.
“We are truly appreciative of the support from LBHF Pension and our other investors,” said Shamez Alibhai, head of community housing and portfolio manager at Man GPM.
“Our investment strategy is based on ensuring affordability and accelerating the delivery of new homes in the communities in which we invest.”
“LBHF’s investment is further evidence of a strong appetite from institutional investors for opportunities within residential real estate and its ability as an asset class seeking to deliver long-term sustainable financial returns.”
This investment follows the recent first closure of the fund. It had received initial commitments from Big Society Capital, the Schroder BSC Social Impact Trust, the Swansea and Strathclyde Local Government Pension Schemes and £20 million by Homes England, the executive non-departmental public body sponsored by the Ministry of Housing, Communities & Local Government.
Man Group has invested £10 million of its own capital as part of its commitment to the fund.