Affordable housing fund reaches £362m of institutional investment

Investors in the fund include UK local government pension schemes and other institutional investors. 

Man Group said the fund reflects “growing demand for affordable housing as an asset class that offers long-term, inflation-linked income characteristics”.

The portfolio includes developments in Wokingham and Northampton, where 384 homes have already exchanged or are under construction.

Shamez Alibhai, managing director and head of community housing at Man Group, said: “CoHo 3 surpassing £362m is a signal that institutional investors increasingly see affordable housing as an asset class that is designed to meet income needs while addressing one of the UK’s most pressing social challenges.”

He said Man Group’s “job is to ensure that capital translates into homes that people can afford to live in and create a positive social and environmental impact”.

Oxfordshire Pension Fund has finalised an investment of £55m in CoHo 3 to build affordable homes in the area and across the country over the next few years. 

Josh Brewer, responsible investment officer at the fund, said: “Investing in the construction of new affordable homes helps tackle the housing shortage across the county, while targeting stable, long-term returns to support pension funding.”

Thobeka Kellett, senior investment analyst at Wiltshire Pension Fund, said: “As an investor in CoHo 1, we’ve seen the team deliver high-quality, affordable homes even in challenging market conditions. 

“That track record, alongside its focus on energy efficiency, its commitment to residents’ financial sustainability, and its operational carbon reduction targets, made it a compelling investment for us.”