Affordable housing fund manager launches

Yasmine Raso

Senior Journalist, Financial Newswire

25 November 2022

Supported by a $240 million founding investment from industry superannuation fund, HESTA, the affordable housing investment manager Super Housing Partnerships (SHP) has launched its first fund.

SHP offers institutional investors access to equity investment in new build-to-rent (BTR) housing developments but with a twist, focusing on social and affordable housing in the Australian market with the new fund based in Victoria.

With an “aggregator-style” platform and partnerships with sustainable housing developers like Assemble and community housing providers like Housing Choices Australia, SHP will collect capital from institutional investors and dedicate it to its affordable housing mandate.

“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,” HESTA chief executive, Debby Blakey, said.

“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.”

The first fund will focus on developing BTR Victorian apartment projects with over 1,600 mixed-tenure residences on the cards covering a range of housing types including social, affordable market-rate and specialist disability housing.

“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,” SHP venture partner, Kris Daff, said

“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 $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.

“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.”