Brunel invests via PGIM in Affordable Housing Fund

Brunel Pension Partnership is pleased to announce its addition of PGIM Real Estate’s UK Affordable Housing Fund to the tailored portfolios of five of our clients.

Northern Pool has also committed to this PGIM fund and we are grateful for the leadership Northern has shown in the collaboration exercise.

The UK Affordable Housing Fund is an open-ended Alternative Investment Fund that invests in and develops new affordable housing for working families across the UK, while targeting acceptable net returns for investors. These twin aims ensure it meets the aspirations and priorities of the partnership.

“We are delighted our clients will now have access to this emerging but under-represented sector of the UK residential market,” said Vanessa Jacka, Investment Principal at Brunel. “The fund is intent on encouraging better practices, both environmentally and socially, in a housing sector where provision has historically been fragmented and left totally to local authorities and housing associations. PGIM has a strong track record of raising standards in affordable rental and it is an area where the LGPS can provide long-term support whilst achieving appropriate investment returns.”

The fund 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.

“We’re very pleased that Brunel have been able to provide our fund the chance to invest sustainably and responsibly in affordable housing,” said Matthew Trebilcock, Head of Pensions, Gloucestershire Pension Fund. “PGIM Real Estate is an expert in the field and shares our priorities to see sustainable investments that also enable social benefits.”

PGIM Real Estate has a strong track record in UK affordable housing and made its first investment in the sector in 2016. That investment included portfolios in Sheffield, Hull, Reading, Southampton, Dunbar and Glasgow. You can access their press release on the PGIM Real Estate website .

The main image shows an existing affordable housing development previously acquired by PGIM Real Estate