London CIV, the local government pension scheme (LGPS) pool that serves all London boroughs and the City of London, has teamed up with The Church of England to make a combined £104m “anchor” commitment into Man Group’s Community Housing Fund 3.
The initial capital investment in the shortened and trendily named Man CoHo 3, is to enable more than 350 energy efficient, affordable family homes to be built in areas of constrained affordability across the UK.
It is the first step towards an initial capital raise of £300m, funding the delivery of 1,000 homes over the next few years.
This latest investment in affordable housing is the fifth since the LCIV UK Housing Fund was launched in March 2023.
The LCIV UK Housing Fund was launched by London CIV in March 2023 to enable its 32 partner funds to invest in affordable housing, which can reap benefits such as income that typically tracks inflation, high occupancy, low void rates and low correlation compared to other real estate sectors.
In addition, The Church of England’s Social Impact Investment programme is managed by the Archbishops’ Council and was established in 2020 to respond to the growing need for investment-based models to tackle social challenges in England, including the housing crisis and the need for a just energy transition towards net zero.
Christopher Osborne, head of real estate at London CIV, said: “We look forward to Man CoHo 3 driving returns for our underlying partner funds and through its impact framework accelerating the delivery of much needed new and quality affordable homes in the UK.”
Vanessa Morphet, head of social impact investment at the Archbishops’ Council, added: “Man Group’s Community Housing Team have set clear and ambitious targets for the fund, including 90% affordable housing assets and significant improvements in the energy efficiency of homes.”
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