supporting affordable housing

HESTA is a founding investment partner in Super Housing Partnerships (SHP), expecting to commit $240 million to the development of build-to-rent apartment projects that will help increase the supply of affordable housing in Victoria, and aims to deliver stable, long-term returns for members.
 

SHP will provide institutional investors including HESTA with access to equity investment in new build-to-rent housing projects, with a focus on social and affordable housing unique to the Australian market. This is a type of investment that’s relatively mature for institutional investors in the US but is only just emerging as an opportunity in Australia.

What is build-to-rent?

Build-to-rent is a model of housing development where homes are built specifically for rental purposes rather than sale. SHP’s build-to-rent projects will be designed to deliver purpose-built, long-term rental housing. Ownership is retained by the investors, and then leased out to tenants, typically on a longer-term basis.

An opportunity to make a difference

HESTA CEO Debby Blakey says our founding investment in SHP’s pipeline of build-to-rent homes helps kickstart an emerging investment sector.

“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 seeks to address some of the barriers to institutional investment in affordable housing at scale through specialist funds management skills and partnerships with affordable and sustainable housing developers and community housing providers.

SHP affordable housing - Macauley Rd, Kensington, Victoria

SHP venture partner Kris Daff says: “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 $240 million initial investment as this expected commitment demonstrates the value of SHP to large institutional investors seeking real assets, while delivering vital outcomes for Australians struggling to access secure housing.”