L&G invests £75m in Oxfordshire housing association

Over the next five years, the social landlord plans to invest around £150m in new developments, aiming to deliver a further 833 homes. The tenure split is expected to be 30% social rent, 50% affordable rent and 20% shared ownership.

The 5,700-home landlord manages affordable housing predominantly in West Oxfordshire, with 80% of its homes concentrated there. The remaining 20% are spread among Gloucestershire, Wiltshire and Worcestershire.

Anna Szypkowska, investment manager at L&G corporate private credit, said: “Lending such as this is a prime example of how institutional investors’ long-term patient capital can deliver investments that benefit society for successive generations, increasing the supply of homes in the communities that need them most.” 

Tom Archer, assistant director at Centrus, which arranged the funding, said: “This transaction forms part of a wider refinance of legacy debt which has unlocked capacity and lowered interest costs, helping Cottsway to continue the great work that they do in their communities.”

Housing associations represent a core part of L&G’s private credit portfolio, the investor said, with around £1.75bn invested in the sector.

L&G also invests in the sector via its registered provider, Legal & General Affordable Homes (LGAH), as well as through public bonds.  

Last week, LGAH announced it had acquired 390 shared ownership homes from Orbit Group for nearly £35m. Ben Denton, chief executive of LGAH, said the acquisition will “helping ease pressure on local balance sheets so that they can then spend their limited funds in areas of real need”.