This article is from the Australian Property Journal archive
SPECIALIST investment manager Lighthouse Infrastructure has secured Australia’s first social loan dedicated to funding Specialist Disability Accommodation (SDA), with the $130 million-plus facility issued in equal part by Commonwealth Bank of Australia (CBA) and NAB.
The loan will enable the expansion of SDA assets within Lighthouse’s Australian Disability Accommodation Projects Trust 2 Fund (ADAPT2), which focuses on long-term investment in the sector including development and construction of new SDA assets and the acquisition of operational SDA properties. The fund is backed by capital provided by investor Victorian Funds Management Corporation (VFMC).
In establishing the social loan CBA and NAB served as joint sustainability coordinators, collaborating with Lighthouse to develop its sustainable financing framework. Lighthouse sought to adhere to market best-practice by aligning its framework to the Social Loan Principles issued by the Asia Pacific Loan Market Association (APLMA).
Only four social loans have been issued in total in Australia. A number of social loans for affordable housing have been issued in the United Kingdom, but none in Australia for SDA until now.
“We are delighted to be partnering with CBA and NAB on Australia’s first social loan supporting Specialist Disability Accommodation, which helps to finance our SDA portfolio investment,” said James Hooper, managing director, Lighthouse Infrastructure.
“The commitment by both NAB and CBA has the potential to kickstart growth of the SDA investment market, supporting more socially aligned assets and projects that will benefit society, individuals and investors,” he said.
Andrew Hinchliff, Commonwealth Bank group executive, institutional banking and markets, said, “CBA is proud to support Lighthouse Infrastructure on its mission of ensuring that Australians living with disability can access affordable, purpose-built accommodation and the security, dignity and independence that comes with having your own home.
NAB group executive, corporate and institutional banking, David Gall said, “NAB is proud to be partnering with Lighthouse and supporting the development of more diverse, modern and design-appropriate homes for Australians in need.”
He said governments, banks, private capital providers, community groups and the property and development sector all have an important role to play in ensuring Australians can access affordable and specialist housing, and NAB has committed to lending a further $6 billion to the sector by 2029.
