London CIV and The Church of England anchors seed commitment into Man Group’s Community Housing Fund
This was the first close of Man CoHo 3, which was led by London CIV and the Church of England’s Social Impact Investment Programme after a robust due diligence process.
The initial capital invested by the anchor investors in Man CoHo 3 is expected to help enable more than 350 energy efficient, affordable family homes[1] to be built in areas of constrained affordability[2] across the UK, and is the first step towards an initial capital raise of £300m, funding the delivery of 1,000 homes over the next few years.
The LCIV UK Housing Fund was launched by London CIV in March 2023 to enable its 32 partner funds (all London boroughs and the City of London) to invest in the attractive characteristics underpinned by affordable housing, including income that typically tracks inflation, high occupancy, low void rates, and low correlation compared to other real estate sectors.
This latest investment in affordable housing is the fifth since the LCIV UK Housing Fund was launched in March 2023.
Christopher Osborne, Head of Real Estate at London CIV, said: “Following extensive due diligence and negotiations on behalf of our partners funds, we are delighted to have committed capital into Man CoHo 3; this represents a compelling opportunity to partner with a quality manager (Man Group) in the affordable housing space, under the stewardship of Shamez Alibhai and his team.
"We look forward to Man CoHo 3 driving returns for our underlying Partner Funds and through its impact framework accelerating the delivery of much needed new and quality affordable homes in the UK."
The Church of England’s Social Impact Investment programme is managed by the Archbishops’ Council and was established in 2020 to respond to the growing need for investment-based models to tackle deep rooted social challenges in England including the housing crisis and the need for a just energy transition towards Net Zero.
Vanessa Morphet, Head of Social Impact Investment at the Archbishops’ Council, added: “Too many families are vulnerable to the UK’s housing crisis and are priced out of decent, stable homes in the communities where they want to live and work.
"Man Group’s Community Housing Team have set clear and ambitious targets for the fund including 90% affordable housing assets and significant improvements in the energy efficiency of homes. The team bring considerable expertise, a comprehensive impact assessment process, and excellent relationships with Local Authorities and Housing Associations and we look forward to what can be achieved to help address the significant need for new quality affordable homes.”
About London CIV
Launched in 2015, London LGPS CIV Ltd (‘London CIV’) is an investment pooling company that exclusively manages Local Government Pension Scheme (LGPS) assets for the London boroughs and City of London, all of which are equally our Partner Funds and shareholders.
As of 31 October 2024, London CIV has £32.9bn in pooled assets (£18.4bn assets under active management and a £14.5bn in passive fund assets). There are 20 funds that invest in public markets and six that invest in private markets, all of which have been exclusively designed and are available to our London partner funds. Our purpose is to work together to deliver sustainable prosperity for the communities that count on us all.
London CIV is authorised and regulated by the Financial Conduct Authority ('FCA').
About the Archbishops’ Council Social Impact Investment Programme
The Archbishops’ Council Social Impact Investment Programme was established in 2020 to direct capital towards new solutions to deep-rooted social challenges. The £25m Programme aims to mobilise capital and to support vulnerable and marginalised communities through its themes of Housing, Flourishing Communities, and a Just Transition.
[1] With a mix of regulated and non-regulated tenures
[2] Constrained affordability defined as a median house price to median income ratio of >7.0x in the local authority area
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