The new partnership, Perpetual Opportunities Partnership (POP), supports Legal & General's plan to play a greater role in UK housing and infrastructure, the firms said in a statement.

POP would focus on investing in the energy, housing, urban regeneration and alternative financing sectors, they added, initially in the UK and Ireland.

They would target medium and long-term investments that offer strong risk-adjusted returns, whilst also providing a wider positive social impact.

The partnership would not bid for assets normally attractive to Patron's existing funds or Legal & General's existing direct property origination platforms, they said, and would not be constrained by deal size, with equity investments likely in the 20 million pounds to 200 million pounds range.

(Reporting by Simon Jessop; editing by Nishant Kumar)