According to the asset manager, the fund — which remains open to investment — is on track to reach its £1bn target by 2026.

Of the latest £118m investment, £50m has been committed by the Strathclyde Pension fund, a local government pension scheme (LGPS).

In addition, re-ups of £58m and £10m have been made by London CIV and Avon LGPS, respectively.

The latest fundraising round coincides with Octopus surpassing its milestone of owning 500 affordable homes.

“It’s great to see this level of interest in affordable housing from LGPS and also from the government more broadly,” said Jack Burnham, head of affordable housing at Octopus Capital.

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“The announcement of a £39bn commitment to the sector over the next decade in their recent spending review is a hugely positive move.

“It supports the scale-up of affordable housing delivery across the UK — and aligns closely with the priorities of the long-term institutional investors we work with.”

Christopher Osborne, head of real estate at London CIV, added: "London CIV is delighted to have committed a further £58m of capital into the Octopus Affordable Housing Fund, taking its total commitment to £108m.

“Octopus is on course to deliver the target net returns for our underlying London LGPS partner funds and remains focused on increasing the supply of good quality and energy efficient affordable homes across the UK.”