L&G’s Future Cities business will provide up to £4bn of funding over the next decade which will go towards the new homes as well as the creation of the districts, which it says will include “modern workspace and research facilities”. The funding will come from Legal & General’s shareholder, annuity and LGIM-managed funds.
While Oxford is renowned for its university, the partners acknowledged that it lacks affordable residential and commercial space.
According to the latest Zoopla city house price research, it is the third most expensive city in which to purchase a property in the UK, with average values of £407,300.
The Future Cities business has so far funded the creation of more than 2.5m square feet of commercial space, as well as more than a thousand new homes, in cities including Cardiff, Leeds and Newcastle.
John Cummins, managing director of L&G’s Future Cities business, noted that universities were a key driver for the growth of cities, acting “as a magnet for talent and incubator of growth and innovation”.
He added: “This partnership is a unique opportunity for two large and long-term UK institutions to work together to address Oxford University’s, and indeed the city’s, future needs, enabling it to continue to be a centre of growth.”