Thriving Investments secures £20m boost for affordable homes fund

The Scottish National Investment Bank has upped its investment in Thriving Investments’ mid-market rental fund to £60m. The bank has added a further £20m to its previous investment in the fund. The New Avenue Living fund, which has a mandate to build 1,500 high-quality, energy-efficient homes close to major Scottish city centres, has to date delivered 649 homes, with another 422 in development. The homes are rented out at reduced rates on the open market. In line with Thriving Investments’ wider commitment to create and regenerate residential-led communities through both an environmental and social lens, the current investment portfolio aims to deliver homes with an EPC rating of B or higher. Additional social impact and ESG metrics have also been adopted to measure apprenticeships, training, brownfield land regeneration and community contributions. Other investors in the fund include Strathclyde Pension Fund, which last year committed a further £20m, as well as Nationwide Building Society Pension Fund and Places for People Scotland. William Kyle, fund director at Thriving Investments, said: “The role of private capital in meeting the shortfall of housing in the UK has never been more critical, and we recognise our responsibility as stewards of that capital to showcase the pace and scale that can be achieved with the right platform. “The Scottish National Investment Bank’s continued support is a strong endorsement of our differentiated structure and approach, reflecting the unique combination of social value and competitive and stable long term, day-one returns that the fund offers, as well as the resilience of the asset class against what has been one of the most volatile macroeconomic backdrops of recent memory.” He added: “We continue to work with our development partners to ensure the suitability of our end product against a constantly evolving consumer and regulatory backdrop. Environmental standards are a key priority, in particular energy efficiency and sustainable heating sources, which has seen us exploring sites with access to district heat.” Andy Clapp, portfolio director at Scottish National Investment Bank, said: “This investment aligns to our mission to transform communities. We recognise the importance of public and private sector partners working together to deliver the homes that people need, in the right places and at a price they can afford.”