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Investment fund manager Cheyne Capital has launched a second impact real estate fund with a “balanced” approach to financial and social return worth £550m.
The Cheyne Impact Real Estate Trust plans to invest an initial £150m and work alongside councils, housing associations and charities to develop affordable key worker housing, supported living facilities, care provision and mixed-tenure development.
Cheyne hopes that with an advanced pipeline of £500m in investments, the fund will deliver around 3,000 homes, including through repeat deals with existing partners.
It will generate a stable, long-term, inflation-linked dividend for shareholders while creating positive social outcomes in line with the UN Sustainable Development goals, the organisation said.
Stuart Fiertz, co-founder and president of Cheyne Capital, said: “We have spent the past six years building up a broad network and pipeline, and have the deep experience to help us continue delivering on our conviction that financial and social returns are not just complementary but will actually lead to superior outcomes over the long term.
“In these unprecedented times it is more important than ever that we are able to offer our investors access to secure, long-term, inflation-linked cash flows.”
Ravi Stickney, head of real estate at Cheyne Capital, said: “The need for affordable housing and best-in-class accommodation for the public social care sector, coupled with the need for tenants to have security of tenure, is more urgent than ever.
“The UK has an estimated five million households in need of housing, yet only 50,000 new affordable homes are being created each year. There is also an acute lack of social care homes serving the public sector on affordable rents.”
The first fund included investments in a 100% affordable housing development in Luton, which was built without any public subsidy, and a 225-home scheme for key workers in Sheffield.
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