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HESTA invests $240 million towards housing fund manager
HESTA has launched Super Housing Partnerships (SHP), a specialist affordable housing fund manager.
HESTA’s $240 million investment was aimed towards the development of numerous build-to-rent (BTR) apartment projects in Victoria.
With a purpose of providing “social and affordable housing unique to the Australian market”, institutional investors would be able to access equity investment in BTR projects.
Debby Blakey, HESTA chief executive, said that SHP’s pipeline of new homes underpinned by the fund’s investment was designed to support long-term and reliable returns.
“We have the opportunity to innovate and invest to meet an unmet need, providing our members with appropriate risk-adjusted investment returns by improving housing supply,” Blakey said.
The housing fund manager would additionally use an aggregator-style platform to solve the numerous obstacles to investment in affordable housing.
She commented: “A lack of access to housing impacts our members who provide critical services and need to afford housing near their work, and economic productivity that presents broader systemic risks to long-term investors like HESTA.”
SHP’s first fund would utilise aggregate capital from institutional investors to construct over 1,600 mixed-tenure dwellings.
Additionally, it would partner with Assemble, a sustainable housing developer, and Housing Choices Australia, a community housing provider.
A combination of affordable, social, market-rate and specialist disability housing would be present in the BTR Victorian apartments.
Kris Daff, SHP venture partner, described the project as “a crucial part of the solution to the acute and growing shortage of affordable housing in Australia.”
“We welcome HESTA’s significant $240 million initial investment as this commitment demonstrates the value of SHP to large institutional investors seeking real assets, while delivering vital outcomes for Australians struggling to access secure housing,” he said.
Blakey added: “HESTA and SHP, through establishing this unique approach, have effectively built the pipes and pumps to allow institutional capital to flow towards addressing our national housing crisis.”
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
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