Local Government Pension Scheme (LGPS) fund, the Greater Manchester Pension Fund (GMPF), has committed £120m to Legal & General's (L&G) UK affordable housing strategy.

In total, L&G secured a further £150m in commitments for its UK affordable housing strategy, consisting of GMPF's commitment alongside internal client capital.

This latest investment follows the recent launch of the L&G Affordable Housing Fund and has brought the total commitments of the fund to £280m.

The fund will be managed by L&G's asset management division and aligns with L&G’s net-zero carbon target by 2050 or sooner.

GMPF chair, Gerald Cooney, said GMPF was “proud” to be the “cornerstone" of this investment with longstanding investment partner L&G and to support the government’s plan to provide "much-needed affordable homes for hardworking families while aiming to deliver strong low-risk returns to pay the pensions of our hardworking members".

Adding to this, L&G Private Markets CEO, Laura Mason, said: "Today’s announcement demonstrates the important role pensions capital can play in investing in tangible assets that we believe can benefit the real economy while seeking to deliver positive societal outcomes. Our evolving partnership with GMPF is a testament to this.”

“When we launched our affordable homes business back in 2018, we had the aim of attracting new, much-needed institutional investment into the asset class and increasing affordable housing delivery across the country,” L&G Affordable Homes CEO, Ben Denton, explained.

“Now with the launch of the fund and the support of partners like GMPF, we can make a real impact on people’s lives across the country, delivering homes that people can afford and place-based solutions to support inclusive growth, alongside delivering great customer service.”

This article was originally published on our sister title, Pensions Age.

---