Falkirk Council pension fund investment in new housing

Falkirk Council's pension fund has invested £30m in a scheme to build social housing in Scotland.

The local authority has awarded the sum to Hearthstone Investments, a London property fund which hopes to build 1,000 new homes across the country.

The Falkirk Local Government Pension Scheme Fund contribution could pay for up to 300 new homes, including 126 in Falkirk and Clackmannanshire.

Social Justice secretary Alex Neil said the fund was "a trailblazer".

Hearthstone aims to raise £150m for its Housing Fund For Scotland, including contributions from the country's 11 local government pension schemes.

It plans to provide funds to local housing associations to invest directly in social housing, as well as buying affordable homes to be let at a mid-market rent.

Edinburgh-based housing association Castle Rock Edinvar will manage the initial building programme for social rent houses.

Mr Neil said: "The £30m Falkirk Local Government Pension Scheme fund investment will, I believe, act as a trailblazer and encourage other Scottish local authority pension fund trustees to take the plunge and invest in housing.

"For an acceptable risk profile, investment will provide pension funds good, long-term returns for their members and a social investment to help build stronger communities."