Funded by a combination of internal debt and equity, the development was made possible through a £4.9m grant from the Mayor of London’s affordable housing programme.

This is the first investment as part of a long-term partnership with developer London Square Group and affordable housing provider Square Roots.

The 100% affordable scheme, comprising 125 affordable rent and shared ownership homes, is being developed on the former Hawks Road Health Clinic site in Kingston-upon-Thames, Surrey.

It will provide 44 apartments to be rented at London Affordable Rent (LAR) levels and 81 apartments for shared ownership, with on-site amenities for residents, such as play space.

London Square is acting as contractor and developer, with Square Roots as the affordable provider.

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Construction of the main buildings is now under way, with the development expecting to reach completion in November 2025.

Allen Twyning, investment director at PIC, said: “We are excited to be partnering with London Square and Square Roots on this development and our inaugural equity investment in social housing.

“We are also delighted that a grant was secured from the GLA Affordable Housing Programme that has made the overall scheme viable, given the high interest rate environment, and inflated building costs.”

Adam Lawrence, CEO at London Square, added: “Our new partnership with long-term investor PIC is excellent news for London Square and Square Roots, enabling us to deliver another 100% affordable scheme, making an important contribution to the housing shortage, and creating homes and communities of the highest quality in a well-connected location.”