PGIM Real Estate has launched its UK Affordable Housing Fund, with an initial capital raise totaling £190 million, from the Northern LGPS and Brunel Pension Partnership.

The open-ended income-focused UK Affordable Housing Fund targets a total return of 6-9% per annum, net of fees and costs, by investing in and developing affordable homes for working people and families across the UK. The Fund is also able to leverage, giving it the potential to deploy up to £250 million at launch. The Fund is managed by an experienced team of investment professionals at PGIM Real Estate including Senior Portfolio Manager, Paul Dennis-Jones and Head of UK Transactions, Charles Crowe.

Northern LGPS, combines the assets of Greater Manchester Pension Fund, Merseyside Pension Fund and West Yorkshire Pension Fund. Brunel Pension Partnership brings together circa £30bn investments from ten public pension funds across West and South West England.

There has been a collapse in supply of UK affordable housing since the 1970s, with lack of affordability exacerbated by the end of local authority housebuilding. In 2018/19, just 57,000 affordable/social homes were built in England, versus an estimated annual need of 145,000*. This investment will aim to help alleviate the supply and demand imbalance in the affordable housing sector.

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