AusSuper, HESTA commit to low-cost housing supply boost
Leading industry superannuation funds AustralianSuper and HESTA have committed to increasing Australia’s supply of affordable housing, maintaining their majority stakes in housing developer Assemble following its merger with investment fund Super Housing Partnerships.
The merger, announced today, cements a two-year partnership between the affordable housing developer and specialist investment fund, helping to “unlock institutional capital” for its specialist and complementary program of works.
For institutional investors, the newly merged Assemble promises “scalable opportunities to invest in a range of housing choices to deliver appropriate risk-adjusted returns”.
AustralianSuper chief executive Paul Schroder said the merger would help to “solve a key challenge for institutional investors – like AustralianSuper – looking for scalable opportunities to invest in a range of housing choices to deliver appropriate risk-adjusted returns for members.”
AustralianSuper took a major stake in Assemble in 2020, and committed to investing in the next five projects delivered under its supportive purchase pathway approach.
Founded in 2010 Assemble, specialises in affordable housing developments, while Super Housing Partnerships (SHP), a specialist housing investment manager, says its core remit is to increase Australia’s housing supply “through partnerships with large institutional investors”.
Their partnership commenced in 2022 (the year SHP was founded) on a project to develop affordable Specialist Disability Accommodation (SDA) homes in Melbourne.
Assemble said it aims to “originate, deliver and manage well-designed and suitable homes for renters and homebuyers nationally”, including affordable, social, essential worker, specialist disability and market-rate rental housing.
This includes integrated build-to-rent model and home-ownership pathways via build-to-rent-to-own and build-to-sell living options.
While AustralianSuper and HESTA will maintain their controlling stake, Assemble will now extend an invitation to new institutional investor partners to participate in scale housing investment opportunities.
Its aim, the developer said, is to provide institutional investors with opportunities to generate stable, long-term returns by investing in housing at scale across Australia.
“By providing a diverse range of investment opportunities across the spectrum of mid-market housing, Assemble has solved a key challenge for institutional investors wanting to scale their housing investments, by offering a fresh solution to Australia’s housing supply crisis,” Assemble wrote.
Assemble said it has adopted “a co-leadership approach”, with Kris Daff continuing on as Assemble managing director, whilst Carolyn Viney, formerly chief executive of SHP, appointed Assemble chief executive.
“Together, we will leverage our combined expertise to provide innovative housing investment opportunities for our investment partners, while at the same time, increasing the supply of new, high-quality homes to the many Australians for whom renting or buying a home has been increasingly challenging,” Viney said.
Daff added: “The merger between Super Housing Partnerships and Assemble underscores our commitment to addressing the housing crisis.
“Backed by two of the nation’s largest industry superannuation funds, we are able to scale up the various innovative housing models we have developed over a number of years, and in doing so, provide stable, long-term returns for our investors and their members while offering much-needed housing options for Australians.”
S62 of the SIS act is the Sole purpose test for SMSF’s. Sole and primary purpose of retirement benefits. Union funds remain above the law largely to labor govt’ts protecting their funding model and the libs being too dull or spineless to fix it.
If it TRULY offered ‘risk adjusted returns’ the private sector would already being doing this. It hasn’t been which means it doesn’t offer adequate risk adjusted returns to attract private capital.
Oh I forgot, these guys don’t need to worry about the pesky SIS act. they are now using super fund members money for social programs.
They are apparently run only to benefit members. We know which ones, the union reps. The CFMEU has purportedly had criminal ties but it’s a grey line. Union leadership affiliates get first dibs on the low cost housing perhaps? Anyone who is a member of the liberal as l party need not apply.
I am not against fixing the housing problem created entirely by inept governments but this is a four corner story of the future in the making.
Industry Super opaque Unlisted Assets
CFMEU snouts buried deep in the Super honey pot.
Nothing to see here folks says APRA & ASIC, Industry Super can do whatever they want, kickbacks, related party rorts, gifts, donations, etc all fine and cheers to all over drinks at Industry Super sporting boxes at MCG