POWERED BY MOMENTUM MEDIA
AustralianSuper’s $500m housing investment hits first milestone
AustralianSuper’s nearly $500 million equity commitment to build-to-rent-to-own (BTRTO) developer Assemble has hit its first milestone, welcoming residents into Australia’s first super-backed BTRTO housing development.
The project in Kensington, Melbourne contains 199 completed apartments and includes a number of shared spaces, including a rooftop garden and basketball court, and a fully furnished bookable guesthouse for residents’ guests.
It also includes community services like comprehensive money coaching support to help residents budget to purchase their home and bulk buying that delivers everyday goods such as toilet paper and cleaning products.
It is the first of over 1,400 homes expected to be built by 2027 through AustralianSuper’s partnership with Assemble, with a second BTRTO development in Melbourne’s Brunswick already underway.
Further projects in Brunswick, Footscray, and Coburg are understood to be in the pipeline.
“AustralianSuper is proud to partner with Assemble in this unique housing model,” said Paul Schroders, CEO of the $335 billion super fund.
“As a signatory to the Housing Accord, we are committed to finding scalable solutions that deliver strong long-term returns for members while also responding to the housing supply crisis.”
With the BTRTO model, residents are able to secure their rent and purchase price for up to five years, with the option to buy their home at any stage at an agreed value. Through this, residents are provided an innovative purchase pathway towards home ownership despite a challenging housing market.
According to Schroder, investors like AustralianSuper are “well placed” to contribute to housing supply, although they comprise just one piece of the puzzle.
He added that Australia’s housing supply crisis needs collaboration and new solutions and projects like this “demonstrate the kind of fresh thinking needed to create more homes for Australians now and strong, long-term returns for members in the future.”
Assemble managing director Kris Daff also identified that such institutional investment can help contribute to much-needed housing supply in coming years.
“With AustralianSuper’s support, we are working to bring our unique housing model to more communities, providing more Australians with an alternate pathway to home ownership, and offering them stability and financial surety in a fluctuating housing market,” Daff stated.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
