PfP Capital has raised £85m from two pension funds backing its Mid-Market Rent Fund targeting affordable housing in Scotland.
Nationwide Pension Fund has committed £60m and Strathclyde Pension Fund £25m. It follows investment from Castle Rock Edinvar and the Scottish Government, with more than £140m raised since its launch in June 2018.
The fund manager from Places for People will raise the target size to £140m, in line with short-term pipeline opportunities, and later grow this to more than £400m.
PfP Capital established the fund with government backing, initially with a goal to deliver a minimum of 1,000 homes with a mix of flats and houses within commuting distance of Scotland’s main cities. It has since acquired eight schemes of more than 855 homes.
William Kyle, fund director at PfP Capital, said: “This fund has a unique proposition for investors.
“It has social impact at its core, delivering much-needed additional affordable homes in Scotland to those on low and modest incomes who are not able to take advantage of social housing nor can afford traditional private rentals. The Fund will also deliver consistent, CPI-linked returns to investors.”
PfP Capital is advised by Noble & Co.
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