Brunel and Northern commit to new PGIM affordable housing fund

Brunel Pension Partnership and Northern LGPS have committed a combined £190 million to PGIM Real Estate’s newly-launched UK Affordable Housing Fund.

The open-ended income-focused fund targets a total return of between 6-9% a year, net of fees and costs, by investing in and developing affordable homes for working people and families across the UK.

It targets occupiers aged 24-34 in lower household income quartiles. PGIM Real Estate focuses on providing new homes with high levels of construction quality, energy efficiency and carbon reduction measures.

Opportunities are geographically balanced across different regions of England and Wales, with 38% of the initial pipeline in the northeast or northwest of England.

The fund is also able to leverage, giving it the potential to deploy up to £250 million at launch.

Councillor Ged Cooney, chair of Northern LGPS, said: “The UK has a severe housing shortage which urgently needs to be addressed. Patient long-term capital such as ours is well placed to help address this issue.”

“We look forward to working with PGIM Real Estate and other investors over the coming years to develop the product and deliver an exceptional housing product to residents whilst also achieving a strong income-based return,” he added.