Legal & General invests €120.2m in U.K. affordable housing

Legal & General has provided €120.2 million ($1269.6 million) of long-term debt financing to its affordable housing business.

Secured against the income stream of a U.K.-wide portfolio of high-quality operational affordable housing, this represents its first deal to generate attractive matching-adjustment, compliant direct investments from affordable housing for its growing annuity portfolio. A further €210.4 million ($227.2 million) of development finance is being provided by a consortium of external investors to support the delivery of its current pipeline of 3,500 homes.

Nigel Wilson, CEO of Legal & General, said, “Legal & General’s continued activity in the affordable housing sector demonstrates our unique ability to create real assets which match our long term pension liabilities, recycling the United Kingdom’s hard-earned savings and pensions to support those most in need in society. We have already directly invested over €26.4 billion [$