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LGPS duo among investors committing to UK housing fund [corrected]

Man GPM housing fund's first close also attracts Homes England, Big Society, Schroder Social Impact Trust

A UK affordable housing fund, managed by Man Group’s private markets investment business, has received capital commitments from investors including the UK government’s housing agency and two local government pensions schemes (LGPS).

The newly launched Man GPM RI Community Housing Fund, managed by Man Global Private Markets (GPM), has raised an undisclosed amount at its first close with commitments from backers including Homes England, the Swansea and Strathclyde LGPS, Big Society Capital and the Schroder BSC Social Impact Trust.

Man GPM said its parent Man Group invested £10m of its own capital as part of its commitment to the fund which seeks to raise £400m (€462m). Homes England’s contribution was £20m, Man GPM said without disclosing the amount the other institutions contributed.

The manager said the fund has secured further commitments that will make up subsequent closes in the coming months. The fund will be marketed for a further 15 months or until capacity is reached, the manager said.

In December 2020, the community housing fund announced its first transaction, having agreed a £31m deal with modular housing company ilke Homes, for a 14.6-acre site in Grantham.

The fund has so far committed to 363 new homes in England, with a target of 3,500 homes by 2026, Man GPM said.

Shamez Alibhai, the head of community housing and portfolio manager at Man GPM, said: “This is an exciting milestone for our community housing strategy. With a shortage of quality affordable housing in the UK, we can help address this serious issue in a socially and environmentally sustainable way.”

Eric Burl, the head of Man GPM, said: “Our clients are increasingly viewing the investments they make through a socially and environmentally sustainable lens while also ensuring they achieve their return targets.

”We are very excited to launch the Man GPM RI Community Housing fund as a solution for clients to deliver on both their ESG and financial goals. As Man GPM continues to evolve and grow, we will continue to empower our investment teams to offer solutions to our clients that deliver real impact.”

Jeremy Rogers, CIO at Big Society Capital, said: “We are pleased to partner with the Man GPM team on investments from both the Schroder BSC Social Impact Trust and Big Society Capital.

”Alongside substantial experience delivering high quality and affordable housing in the UK, Man has demonstrated a deep understanding of the needs of its frontline partners and customers.”

A previous version of this story incorrectly stated that the Man GPM RI Community Housing Fund had raised £400m. The fund seeks to raise £400m and has so far raised an undisclosed amount. 

To read the digital edition of the latest IPE Real Assets magazine click here. 

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