Legal & General Affordable Homes has acquired 390 shared ownership homes from Orbit Group for nearly £35m.
The Orbit homes are distributed across 32 local authorities, spreading across the North and South Home Counties, the East and West Midlands, and Norfolk.
Ben Denton, chief executive at Legal & General Affordable Homes, said: “Our vision is for everyone to have a high-quality, well-managed, sustainable and affordable home.
“Our business model balances the need for investors to see a fair and reliable return on their investment, while injecting much-needed additional capital to grow the affordable housing sector.
“At the moment, Housing Associations around the country are managing to create under a third of the new homes that are required to meet current need due to lack of funding and high interest rates.
“By acquiring this stock we are helping to ease pressure on local balance sheets so that they can then spend their limited funds in areas of real need.”
“Through this acquisition, we are not only providing another crucial affordable housing option, we are acquiring good-quality housing stock, creating assets for Institutional Retirement in order to achieve improved risk-adjusted returns for Legal & General’s shareholders
The purchase was funded by Legal & General’s Institutional Retirement division.
Andrew Kail, chief executive at Legal & General Institutional Retirement, said: “By channelling pensions capital to invest in the affordable homes sector, we are proud to help provide high quality housing across the UK.
“These homes, spanning 32 local authorities across the country, will help many people to get on the property ladder, while also providing long-term investment returns that can help us to deliver security in retirement for our pension holders.”
Legal & General Affordable Homes is on track to deliver over 10,000 affordable homes by 2027.
