The Pension Insurance Corporation (PIC) has put direct property investment on hold following a change in ownership.
PIC acquired Ebb and Flow, a build-to-rent scheme in Reading, for around £210m last year (picture: Lincoln MGT)
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The Pension Insurance Corporation has put direct property investment on hold following a change in ownership #UKhousingThe specialist insurer has decided to pause new equity investments in real estate to concentrate on providing debt.
PIC’s change of strategy comes after it was acquired by Athora, a European pensions business, in March.
A spokesperson for PIC said: “Following the acquisition of PIC by Athora, which completed in March 2026, there has been a review of PIC’s risk appetite and investment strategy.
“Athora and PIC have subsequently decided that PIC will not be making any new investments in real estate equity. This investment strategy is consistent across the broader Athora Group.
“PIC remains committed to investing in real estate debt and we are fully committed to investing in the UK. We are actively working with the government at all levels to help bring forward more investment opportunities as our sector continues to grow.”
Athora’s largest shareholder, Apollo, acts as the group’s investment and asset manager. Apollo has also withdrawn from its direct ‘core-plus’ (medium risk) real estate strategies in Europe.
PIC is one of the biggest living-sector investors in the UK, with a 2,300-flat portfolio. It has deployed hundreds of millions of pounds into housing development over the past five years, including build-to-rent (BTR), affordable housing and senior living.
Last year, Inside Housing Living revealed that PIC had bought a BTR scheme in Reading for £210m. PIC also owns the One Eastside scheme in Birmingham, the city’s tallest residential tower, valued at £200m, and New Vic, comprising 500 homes, in Manchester.
In 2022, PIC entered a partnership with Octopus to form Senior Living Investment Partners, valued at £200m. The partnership aims to fund the development and operation of 10 later-living communities across the UK.
PIC is also part of Habiko, a joint venture with Muse and Homes England, which aims to build 3,000 affordable homes across the UK with a gross development value of £1bn.
The insurer completed registration of its for-profit affordable housing provider, Verda Living, with the Regulator of Social Housing in April this year, to own and operate the homes developed through Habiko.
A spokesperson for Habiko told Inside Housing Living: “Habiko will continue to deliver affordable, sustainable homes for rent through its innovative partnership model.
“We are working with PIC to bring on board new funding partners, as part of our commitment to deliver new homes for the people who need them most.
“In the meantime, we continue to make strong progress across our Habiko projects.”
Earlier this month, a large Local Government Pension Scheme pool announced it will launch a UK social housing fund next year.
Over the summer, a large UK insurer forward funded a 331-home BTR scheme in Wolverhampton, and two investors and a pension fund partnered with the University of Manchester to deliver a £530m student housing scheme.
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