Legal & General is lending 拢50m (鈧�69m) to a UK housing group to fund more than 800 new homes.
The 40-year loan, to Adactus Housing Group鈥檚 Chorley Community Housing subsidiary, will be used over the next three years to build homes in the north west of England.
L&G said the homes would be built with annuity money, with the return on the loan paying pensioners鈥� annuities.
Legal & General Retirement managing director Kerrigan Procter said annuity money was 鈥渋deally suited鈥� for investment in housing and infrastructure, 鈥渁s it can be invested for 20, 30 or 40 years, delivering economic growth and increased pensions for retirees鈥�.
L&G鈥檚 lending arm, LGIM Commercial Lending, provided the funding.
The financing is secured against a portfolio of existing assets, as well as Chorley鈥檚 development pipeline.
The investment produces a better return for pensioners than investing in Gilts, L&G said.
The loan is LGIM Commercial Lending鈥檚 second to Adactus following a 拢25m, 40-year loan in July last year.
The division has now invested a total of more than 拢1.2bn across 14 deals.
Transactions include seven loans to the social housing sector, two loans in the student accommodation sector, two hotel debt deals and a loan to the care home market.
