L&G commits £275m pensions to affordable housing

Legal & General has provided £100 million (€120 million/$130 million) of long-term debt financing to its affordable housing business, as it opens the door for U.K. pension money to back the provision of much-needed affordable housing. 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 £175 million (€211 million/$227million) of development finance is being provided by a consortium of external investors to support the delivery of its current pipeline of 3,500 homes.

Legal & General is uniquely placed to invest annuity money into the U.K. economy, supporting its long-term pension commitments and creating real assets that provide new jobs, housing, productivity and wage growth. Affordable housing is an appropriate asset for Legal & Gene