This investment is made of four commitments — two £50m sums from Avon and Gloucestershire, with £40m and £10m invested by Devon and Clwyd respectively.

The new investments follow the fund’s first closing in December 2023 when an initial £50m was raised from London CIV, a collective of LGPS in the capital — A £10m investment from Better Society Capital soon followed in the new year.

“We know there are a number of locally interested investors who are looking for opportunities to deploy capital into funds that can provide specific social impact to their local areas,” said Jack Burnham, head of affordable housing at Octopus.

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“We think this is an approach that should be embraced and are thrilled to be working with Avon, Gloucestershire, Devon and Clwyd Pension Funds to help support them either deliver affordable homes in their areas, or in other areas across the UK.”

Commenting on the pension scheme’s £50m investment, Shaun Stephenson-McGall, chair of the Avon Pension Fund Investment Panel, equated this to 250 homes that could house up to 1,000 people.

“Critically at least 20% will be in the Avon region,” added Shaun. “The new-build properties will raise the supply of secure, affordable and energy-efficient homes, for those that need them most.

 “We’re proud to have worked alongside Devon and Gloucestershire pension funds to get this investment over the line.

“This investment will help us meet our new net zero 2045 goal, while delivering attractive financial returns, to help us meet future pension promises.”

Capital raised last year has since been fully allocated to affordable housing projects via its own registered social housing provider NewArch Homes.

Earlier this year, the Affordable Housing Fund made its first major deployment with the acquisition of 180 affordable homes from Maidstone-based Golding Capital.