UK-based social impact investor Big Society Capital (BSC) has backed an affordable housing fund managed by Octopus Investments.
Investment manager Octopus said BSC has made a 拢10m (鈧�11.7m) commitment to Affordable Housing Fund (AHF), a fund that also received 拢50m from London CIV at its first close last month.
In December, Octopus said the first close of AHF will enable more than 500 affordable family and older persons鈥� homes to be built across the UK and is the first step towards the fund鈥檚 target to fund 5,000 homes in the coming years.
AHF has made its first deployment through a forward funding, committing to acquire 26 homes in Great Haddon, Peterborough, from Vistry Homes. The homes will be owned by NewArch Homes, the fund鈥檚 registered provider of social housing. All units are expected to be delivered by April 2025.
Octopus said AHF has been set up to accelerate the delivery of affordable homes, and will ensure that new homes are built with robust sustainability standards, adding that this aligns very closely with BSC鈥檚 goal to increase the supply of social and affordable housing in the UK, particularly for the most vulnerable.
Jack Burnham, head of affordable housing at Octopus, said: 鈥淲hile the affordable housing investment market is still relatively nascent, it is growing, and we continue to receive strong demand from investors.
鈥淭hey are attracted by the potential to generate long-dated sustainable income, low correlation to other real estate sectors and the ability to have real tangible impact.鈥�
Drew Ritchie, investment director at BSC, said: 鈥淲e believe that impact-driven private capital has a vital role to play in addressing the country鈥檚 housing shortage and we seek to invest in best-in-class managers and investment models that we believe can unlock capital at scale.
鈥淭his is one of the reasons why we have invested into Octopus鈥� AHF, as well as its strong focus on supporting low-income families and older households to access a quality, secure and affordable home.鈥�
Fraser Hopes, managing director of Vistry Homes, said: 鈥淭he sale of 26 homes at Great Haddon Wood to Octopus will help people looking to rent a home, or to buy through shared ownership and become part of this thriving new community near Peterborough. We look forward to welcoming the first residents to their homes later this year.鈥�
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