PfP Capital nets £20m from Strathclyde Pension Fund for affordable homes

PfP Capital has secured a further £20m equity commitment from Strathclyde Pension Fund for its Scottish affordable homes-for-rent strategy. The social value and ESG-focused real estate fund manager has delivered 511 energy-efficient homes in major Scottish cities since 2019, with a further 590 under development. This latest investment brings Strathclyde Pension Fund’s total investment in the New Avenue Living Fund to £45m and reflects the continued appetite from Local Government Pension Scheme funds for exposure to critical real estate that delivers a tangible environmental and social difference. Other investors in the fund include the Scottish government, Scottish National Investment Bank, Nationwide and Places for People Scotland. New Avenue Living has a mandate to deliver 1,500 high-quality, sustainable and energy-efficient affordable homes for rent, let at a discount to open-market rents, within close commuting distance of major Scottish city centres. Since launching the fund with a low-cost loan from the Scottish government, PfP Capital has acquired nine sites across Edinburgh, Leith, Glasgow, Paisley and Midlothian, with additional sites being sought to support the fund’s 1,500-home target. William Kyle, fund director at PfP Capital, said: “By bringing together like-minded and highly experienced counterparties, we see affordable, mixed-tenure housing communities with high sustainability credentials providing a blueprint for future housing delivery in the UK. “For patient capital, and now more than ever amid the search for returns in today’s changed market environment, this type of real estate investment offers a rare combination of social value alongside competitive and stable long-term, day-one returns.” To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews Photo courtesy of FTI Consulting