Octopus Investments raises £150m for its Affordable Housing Fund

Following the latest £150m fundraise, Octopus now has enough capital to build around 1,000 affordable homes, which will also be owned by NewArch Homes.

Octopus said that the fund offers a model that has specific benefits for LGPS funds looking to meet their environmental targets as well as delivering “meaningful societal change through providing safe and secure housing for those who need it in their local areas”.

Jack Burnham, head of affordable housing at Octopus, said: “We know there are a number of locally interested investors who are looking for opportunities to deploy capital into funds that can provide specific social impact to their local areas.

“We think this is an approach that should be embraced and are thrilled to be working with Avon, Gloucestershire, Devon and Clwyd Pension Funds to help support them [to] either deliver affordable homes in their areas, or in other areas across the UK.”

Shaun Stephenson-McGall, chair of the Avon Pension Fund Investment Panel, said that Avon’s £50m investment is broadly equivalent to 250 new homes being built for up to 1,000 people and at least 20 per cent will be in the pension fund’s region.

“The new build properties will raise the supply of secure, affordable and energy-efficient homes, for those that need them most,” he said.

“This investment will help us meet our new net zero 2045 goal, while delivering attractive financial returns, to help us meet future pension promises.”

Phil Latham, head of Clwyd Pension Fund, said: “Clwyd Pension Fund is delighted to partner with Octopus to deliver affordable housing across the UK.

“This collaboration matches our ambition of driving positive societal and environmental impact in the UK, while also fulfilling our fiduciary duty of achieving sustainable investment returns.”