L&G aims to develop affordable housing schemes in the region
LEGAL & General has confirmed it is actively looking at developing affordable housing schemes in Yorkshire.
Legal & General has provided £100m of long-term debt financing to its affordable housing business, as it opens the door for UK pension money to back the provision of housing.
A further £175m of development finance is being provided by a consortium of external investors to support the delivery of its current pipeline of 3,500 homes.
In a statement, Legal & General said: “Legal & General is uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide new jobs, housing, productivity and wage growth.
“Affordable housing is an appropriate asset for Legal & General’s Pension Risk Transfer business, offering a secure portfolio
of inflation-linked rental income which delivers long-term, diversified, stable returns.
“This latest investment demonstrates how Legal & General’s varied capital streams can be put to work in order to tackle the UK’s housing crisis and deliver extraordinary social outcomes.”
Nigel Wilson, chief executive officer of Legal & General, said: “Legal & General’s continued activity in the affordable housing sector demonstrates our unique ability to create real assets which match our long-term pension liabilities, recycling the UK’s hardearned savings and pensions to support those most in need in society.
“We have already directly invested over £22bn into new homes, urban regeneration, clean energy and transport infrastructure.
A spokesman said : “We are activity looking at Yorkshire and the surrounding area to contract on new affordable housing schemes.
“We are currently exploring a number of opportunities across the region including Sheffield, Doncaster and Leeds.”
The spokesman stressed that these talks were in their early stages.