Greater Manchester Pension Fund, Manchester, England, was one of a number of investors that committed a total £30 million ($39 million) to an “essential worker” housing fund overseen by social impact manager Thriving Investments, according to a news release.
The New Avenue Living Greater Manchester Housing Fund carries a pledge to deliver high-quality, sustainable, affordable homes for rent in the Greater Manchester area.
The homes will be rented to essential workers, defined as someone who works in a role that is deemed vital to the day-to-day running of the local community. The rents will be at a discount, capped at a maximum rental level of 80% to open market rents, with the intention of enabling workers to access quality, safe, long-term accommodation, thereby providing continued social impact to local communities.
Also part of the £30 million commitment to Thriving Investments was Better Society Capital and Places for People Group.
A spokesperson for Thriving Investments could not confirm the size of the individual commitments. The Greater Manchester Combined Authority also provided a £10 million loan.
“Our impact portfolio seeks to invest locally and create a positive impact, alongside generating a commercial return,” said Eleanor Wills, chair of Greater Manchester Pension Fund, in the news release.
“The strategy supports the government’s plan to provide much-needed affordable homes for hardworking families while ensuring strong, low-risk returns to secure the pensions of our members,” she continued.
Thriving Investments is targeting a £200 million, 1,000-home portfolio over the next three years, through a mix of forward funding and forward purchase structures.
