Legal & General Capital and Patron Capital have formed a new fund to invest in social real estate projects.
The Perpetual Opportunities Partnership will invest in housing and regeneration in the UK and Ireland. It will target stable, operationally geared investments that offer strong risk-adjusted returns.
Purchases are expected to range from £20m to £200m.
L&G has been investing heavily in infrastructure and social housing, with more than £4.6bn spent in the year to date.
Paul Stanworth, managing director at Legal & General Capital, said: “We are delighted to extend our successful partnership with Patron Capital from co-purchasing CALA Homes to a broader initiative which will significantly expand our pipeline of opportunities into new less congested areas of the market.”
Keith Breslauer, managing director of Patron Capital, added: “The tie-up with Legal & General will enable us to consider longer-term investments that are lower on the risk-reward spectrum, meaning we will be able to act on a greater proportion of the €9bn investment pipeline we review each year.”
