Dealflow | April 9, 2024

Savills Investment Management secures £123 million for affordable housing in the UK

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

London-based Savills’ Simply Affordable Homes fund will invest in new and existing affordable and social housing, as well as in shared-ownership homes. The debut follows the investment manager’s acquisition of affordable housing developer and acquirer Simply Homes in 2022.

The UK “faces serious housing challenges, especially with regard to affordability,” said Savills’ Alex Jeffrey, who is pitching institutional investors seeking positive social impact and decarbonization and a low-risk, inflation-linked income stream.

The Simply Affordable Homes fund will buy up housing stock from nonprofit housing associations to free up capital so they can build new homes. It will also partner with affordable housing developers on new stock. Savills developed its impact framework with social impact advisor The Good Economy.

LPs in the $156 million first close include Samsung Life Insurance, Savills IM’s parent company Savills Plc, and London CIV. UK-based impact investor Big Society Capital committed £10 million to the fund and an additional £5 million via Schroder BSC Social Impact Trust

Equitable homeownership

Separately, JPMorgan Chase committed $20 million in philanthropic funding to eight organizations working to expand homeownership access in underserved US communities.

Impact Charitable, a Denver-based donor-advised funds provider, secured $3 million on behalf of the Dearfield Fund for Black Wealth, which provides interest-free down payment assistance loans to first-time local Black homebuyers.

In Washington, DC, City First Enterprises scored $3 million to help Black and Latino first-time homebuyers with down payments and closing costs.

JPMorgan is also expanding homebuyer grants and mortgage support programs for its customers in majority-Black and Latino communities.