Legal & General Investment Management (LGIM) said it has expanded its existing relationship with Greater Manchester affordable housing firm Jigsaw Homes Group following the completion of a new £50 million 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,” said LGIM.

“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 Debt, Legal & General Investment Management, said: “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.”