Pension Insurance Corporation has made its first affordable housing investment, committing £50m to build 125 homes alongside developer London Square.
Their scheme is on the former Hawks Road Health Clinic site in Kingston upon Thames, Surrey. Forty-four flats will be be rented at London Affordable Rent levels and 81 made available for shared ownership. London Square is contractor and developer, with its Square Roots division the affordable provider. The development should complete in November 2025.
The project is backed with a £4.9m grant from the Mayor of London’s Affordable Housing Programme. PIC expects to invest £500m into affordable housing in London over the coming years and said its tie-up with London Square will be a “long-term partnership”.
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.”
London Square chief executive Adam Lawrence added: “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.”
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