Pension Insurance Corporation (PIC) has made its first foray into the affordable housing sector, investing £50m in the development of 125 affordable and shared ownership homes in Kingston upon Thames, Surrey.
The investment was made as part of a long-term partnership with London Square Group and Square Roots, with PIC intending to invest £500m over the coming years to develop new affordable homes.
The 100% affordable scheme, which is being developed on the former Hawks Road Health Clinic site in Kingston upon Thames, will provide 44 apartments to be rented at London Affordable Rent levels and 81 apartments available for shared ownership.
The development was made possible through a £4.9m grant from the mayor of London’s Affordable Housing Programme.
London Square is acting as contractor/developer, with Square Roots the affordable provider. Construction of the main buildings is under way and the development is expected to be completed in November 2025.
Allen Twyning, investment director at PIC, said: “We are excited to be partnering with London Square and Square Roots on this development and our inaugural equity investment in social housing. We are also delighted that a grant was secured from the GLA Affordable Housing Programme that has made the overall scheme viable, given the high interest rate environment, and inflated building costs. Not only does this create secure, low-risk cashflows with which we can pay the pensions of our policyholders pensions, but it creates huge social value in Kingston upon Thames.”
Adam Lawrence, chief executive of London Square, added: “Our new partnership with long-term investor PIC is excellent news for London Square and Square Roots, enabling us to deliver another 100% affordable scheme, making an important contribution to the housing shortage, and creating homes and communities of the highest quality in a well-connected location where people will choose to live. The scheme will also support the local economy in Kingston, with the creation of jobs during the construction phase and opportunities for apprenticeships and local suppliers.”
