Pension Insurance Corporation (PIC) has invested 拢75m (鈧86.8m) in secured debt issued by Trafford Housing Trust, a housing association in Greater Manchester.
The insurer of defined benefit pension funds has invested alongside BlackRock Real Assets in a wider 拢275m refinancing package to fund both repayment of existing debt and further direct development.
Trafford Housing also has a joint venture with L&Q, a London housing association, to develop 500 homes per year.
The loan matures in three tranches in 2051, 2052, and 2056, matching PIC鈥檚 liabilities.
BlackRock said its involvement, also at 拢75m, brings a number of benefits for institutional clients, including stable, long-term cash flows structured on investment-grade quality social housing income.
Jonathan Stevens, head of European infrastructure debt at BlackRock, said the financing provides an 鈥渆xcellent opportunity鈥 to invest in UK social housing, providing clients with 鈥渁n inherently stable, long-term cash flow profile鈥.
PIC has previously invested around 拢150m in social housing PFI bonds in Greater Manchester, funding the refurbishment of almost 2,500 dwellings in the city.