Australia’s largest superannuation fund, AustralianSuper, has bought a 25 per cent share in a Melbourne affordable housing development group Assemble Communities.
Assemble Communities reported the investment from the fund will allow it to grow its “rent with the option to buy” property portfolio, named the Assemble Model, and over time, to deliver build-to-rent assets.
The group offers alternative housing pathways aiming to meet the needs of low and moderate-income Australians.
Boutique property development group Make Ventures, which acquired Assemble Communities in 2014, is co-investing up to $50 million alongside the fund’s commitment.
Assemble Communities stated its parent company’s investment will make the majority of its project pipeline available, in excess of 4,000 dwellings and 120,000 square metres of non-residential programming.
AustralianSuper’s head of property Bevan Towning commented: “We reviewed a number of models in affordable housing before choosing Assemble Communities’ sustainable and scalable model that will provide both an appropriate return for our members and an affordable housing solution for working Australians.”
Assemble managing director Kris Daff said the investment signals affordable housing options are attractive to institutional capital partners and Assemble now has the ability to scale up to meet market demand.
“With AustralianSuper acquiring a cornerstone investment in our platform, we are primed to take advantage of market opportunities and deliver on our mission of providing fair housing options for generations of Australians,” Mr Daff said.
Article Source: Investor Daily
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