The pension fund will be secured against the income from the Affordable Housing portfolio and used to support the delivery of the firm’s current pipeline of 3,500 homes.
Legal & General’s Affordable Housing business is delivering a mix of social rent, affordable rent and shared ownership homes. The subsidiary was established in 2018 and delivered its first homes in 2019.
The firm said it is on target to create 3,000 homes each year by 2023 and is working in partnership with 14 housing associations and providers.
Nigel Wilson, CEO 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 hard earned 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. Bringing in pension fund capital gives us the scope to do even more.”
Simon Century, head of Affordable Housing at Legal & General, added: “There is an urgent need to provide stable homes for millions of households on waiting lists.
“This investment from Legal & General Retirement will help us further bolster this pipeline.”