This article is from the Australian Property Journal archive
THE country’s biggest superannuation fund, AustralianSuper has taken a 25% share in affordable housing and build to rent developer Assemble Communities, as alternative housing asset classes gain momentum in response to increasing unaffordability.
Over time, the investment will support Assemble’s rent with the option to buy model, and deliver build to rent and potentially affordable build to sell assets in the future, the developer said.
Assemble has a growing pipeline of projects include two in developments in Melbourne’s Kensington, at which residents would have the option to for five years and then buy. The 393 Macaulay Rd project is currently under construction, and applications are open for 15 Thompson St.
Strategic investment company, Make Ventures, which acquired Assemble Communities in 2014, is co-investing up to $50 million. At the same time, it is making available the majority of its project pipeline – over 4,000 dwellings and 120,000 sqm of non-residential programming – to be delivered by Assemble Communities.
Assemble managing director and founder, Kris Daff – who is also managing director of Make ventures – said the investment signals the company’s commitment to affordable housing options is attractive to institutional capital partners, and Assemble now has the ability to scale to meet market demand for affordable housing and build to rent opportunities.
“Institutional ownership and highly engaged management are the key in meeting the scale of demand and in providing new affordable housing and homeownership pathways,” Daff said.
Towning said research shows that home ownership is a key determinant of retirement security.
Also in Assemble’s pipeline is a site in Melbourne’s inner north, and the developer said it is actively considering future sites. It also completed 122 Roseneath St in Clifton Hill in 2018, as part of a joint venture with Wulff Projects and Icon Developments.
AustralianSuper’s head of property, Bevan Towning, said he expected the investment will provide good long-term returns for members while also addressing a significant social issue.
“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.”
