Specialist affordable housing fund manager Super Housing Partnerships (SHP) launches with the support of founding investment partner HESTA committing $240m.
The first fund from HESTA will be set for the development of a pipeline of Victorian Build to Rent apartment assets.
Potentially consisting of over 1,600 mixed-tenure dwellings, the scheme is set to provide social, affordable, market-rate and specialist disability housing.
“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. 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. 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. We’re now looking to work with all levels of government to address blockages that are holding back institutional investment at scale.”
Debby Blakey, CEO, HESTA
This mixed-tenure approach aims to provide improved social outcomes while cross-subsidisation strengthens investment outcomes.
SHP’s first fund will partner with sustainable housing developer Assemble and nationally accredited community housing provider Housing Choices Australia.
SHP will provide institutional investors with access to equity investment in new Build to Rent housing developments, with a focus on social and affordable housing unique to the Australian market.
“The SHP platform is a game-changer and exactly what the affordable housing market in Australia needs. The vision from HESTA and the SHP team, plus the commitment to work with Community Housing Providers to deliver genuine quality housing for those who need it most is unique, and very welcome.”
Michael Lennon, Managing Director (MD), Housing Choices Australia
The recently launched housing fund manager is currently seeking to address some of the barriers to institutional investment in affordable housing at scale through an aggregator-style platform combined with specialist funds management skills, partnering with affordable and sustainable housing developers and community housing providers.
It will aggregate capital from institutional investors into its housing strategies.
The tenure mix that is a part of the Build to Rent housing development plans will look to support the delivery of investment returns by providing a streamlined income profile, with stable rental income, high demand, and low vacancy rates, which will give resilience to changing economic conditions.
“SHP is a crucial part of the solution to the acute and growing shortage of affordable housing in Australia by providing institutional investors with the opportunity to invest in a developing portfolio of affordable projects and, in due course, completed assets. There are society-wide negative impacts associated with the housing affordability crisis. It was not that long ago we were worried about how ordinary working Australians were able to purchase their first home – we have moved well beyond that to a point where the concern is now how everyday Australians can even rent a home. We welcome HESTA’s significant $240m 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. SHP intends to expand its initial Victorian portfolio and is currently working with key strategic development partners for the delivery and operation of assets nationally.”
Kris Daff, Venture Partner, SHP
All SHP housing projects aim to be net zero operational carbon, with the company aiming to measure and manage impact outcomes against United Nations Sustainable Development Goals.
Despite the long-term success of super funds in affordable housing projects, there have remained barriers to scaling many of these approaches.
While the launch of SHP can help address these sector-wide challenges, improved policy settings at all levels of Government would further encourage greater institutional investment in Build to Rent.
