LGIM provides further £50m funding for Jigsaw Homes Group to help tackle the housing crisis

Legal & General Investment Management (LGIM) has expanded its existing relationship with Jigsaw Homes Group (Jigsaw) following the completion of a new £50m bilateral investment. The proceeds of this new investment will primarily be used by Jigsaw to support its development programme to deliver over 4,000 new social and affordable homes between 2024 and 2028.

As one of the largest housing providers in England, Jigsaw builds, renovates and manages affordable housing for rent and sale - with more than 36,000 homes across the North-West and East Midlands.

The investment follows two previous loans to Jigsaw in 2014 and 2015 respectively, totalling £75m. LGIM and Jigsaw agreed on this new £50m bilateral facility, structured as an amendment and additional tranche to the existing facility, increasing the total investment with LGIM to £125m. The loan was structured with a 40yr final maturity, with equal amortising from year 30, creating a 35yr weighted average life profile, well suited to long-term patient pension capital.

Paul Chisnell, Executive Director of Finance at Jigsaw Homes Group said: “As we continue with our plans to help tackle the current shortage of new affordable housing, this partnership approach with LGIM helps us take another step forward in our commitment to deliver 4,000 homes over the next five years, as well as investing in projects and assets that increase life opportunities for our residents.”

Steve Bolton, Head of Corporate Private Credit, UK & Europe, LGIM commented: “We’re pleased to be able to deepen our longstanding partnership with Jigsaw, helping them to continue investing in their mission of “creating homes, building lives”. Our partnership with Jigsaw shows how institutional investors can help support the sector in a number of different ways. This investment is an example of how we can support our long-term pension commitments while also helping a leading organisation like Jigsaw build new homes and invest in their communities.”

Investing across the UK, US and Europe, LGIM Real Assets manages around £17.0bn1 of private credit investments on behalf of institutional clients globally. Its investment capabilities extend across real estate debt, infrastructure debt, corporate debt and alternative debt.