Global alternative investment manager Man Group has raised £362m for its open-ended Man RI Community Housing Fund 3 (CoHo 3), surpassing its initial £300m target.
The capital commitments will support the delivery of new affordable, energy efficient homes in areas of England where housing costs significantly outpace local incomes.
The fund targets 90% affordable housing across its portfolio across a mix of social rent, affordable rent and shared ownership tenures.
Shamez Alibhai, managing director and head of community housing at Man Group, said: “CoHo 3 surpassing £362m is a signal that institutional investors increasingly see affordable housing as an asset class that is designed to meet income needs while addressing one of the UK’s most pressing social challenges. The government’s Mansion House agenda supports a clear framework for institutional capital to play its part, and our job is to ensure that capital translates into homes that people can afford to live in and create a positive social and environmental impact.”
Josh Brewer, responsible investment officer at Oxfordshire Pension Fund, added: “The Oxfordshire Pension Fund has finalised an investment of £55m into the Man Group Community Housing Fund to build affordable homes in Oxfordshire and across the country over the next few years. Investing in the construction of new affordable homes helps tackle the housing shortage across the county, while targeting stable, long-term returns to support pension funding.”
Thobeka Kellett, senior investment analyst at Wiltshire Pension Fund, said: “We’ve long understood the need for more genuinely affordable housing in the UK – not just to rent or buy, but also the ongoing day-to-day costs of running a home. As an investor in CoHo 1, we’ve seen the team deliver high quality, affordable homes even in challenging market conditions. That track record, alongside its focus on energy efficiency, its commitment to residents’ financial sustainability, and its operational carbon reduction targets, made it a compelling investment for us.”
