Legal and General is pumping a total of £275m into its affordable housing business as it seeks to deliver 3,000 such homes a year by 2023.
L&G said £100m was long-term debt financing from its pension fund which would be secured against the income coming from its affordable housing assets.
A further £175m is coming from an un-named consortium of external investors.
The funding will support the delivery of its affordable housing pipeline of 3,500 homes.
Half the pipeline would be for social or sub-market rent, the rest for shared ownership, according to an L&G spokesperson.
L&G said it was on track to meet its target of building 3,000 affordable homes a year by 2023, working with 14 housing associations and other providers.
Affordable housing was “an appropriate asset for L&G’s pension risk transfer business, offering a secure portfolio of inflation-linked rental income which delivers long-term, diversified, stable returns”, the finance giant said.
Nigel Wilson, L&G’s chief executive, said the group had invested £22bn in new homes, urban regeneration, clean energy and infrastructure. “This is inclusive capitalism at its best,” he added.
Source: housingtoday
