L&G is allocating £1.5bn to the vehicle, and working alongside investment partners plans to secure further external funding up to £15bn.

The fund will invest across the UK, in both equity and debt, and will take construction risk and invest in different sectors and projects.

It has been set up as a co-investment vehicle, with L&G acting as both principal investor and manager. External investors’ economic and reputational interests are therefore closely aligned with L&G’s, and with L&G as the investment manager external investors have access to local knowledge and expertise through a partner they know, trust and respect.

The model is already successfully deploying for specific projects including Salford, Canning Town, Plymouth, Bracknell and London.

The fund will further benefit from co-operation and collaboration with RIO – the government’s Regeneration Investment Organisation – acting as sponsor to help facilitate a deal pipeline, and work with central and local government on infrastructure projects.

Legal and General Group chief executive, Nigel Wilson, said: “The UK is a terrific place to invest. We are well-positioned to work alongside UK and international money to channel funds into regeneration that delivers growth, homes and jobs.”

UK minister for cities Greg Clark added: “L&G’s decision to launch a £15bn regeneration vehicle and invest £1.5bn is fantastic news and a vote of confidence in the UK economy and our regional cities.”