Housing NFP Receives $6.7M Impact Investment
13 January 2016 at 11:43 am
Superannuation fund HESTA’s first investment from its $30 million impact investment fund has been allocated to a Not for Profit community housing provider.
Horizon Housing, a Queensland-based organisation focussed on increasing the supply of social and affordable housing, has received $6.7 million from the Social Impact Investment Trust.
HESTA CEO, Debby Blakey, said the investment would have a social impact, not only through developing investable models that address social and affordable housing challenges.
“Many of our members are familiar with the difficulty of accessing affordable housing and achieving home ownership,” Blakey said.
“So, it’s appropriate that HESTA’s first Australian impact investment has the potential to both earn a financial return and help address a social issue impacting the community and our members.”
The Trust, Managed by Social Ventures Australia (SVA), will partner with Horizon Housing to finance the purchase of management rights for 995 existing affordable housing properties and the future development of up to 60 new social and affordable homes across Queensland and northern New South Wales.
Executive Director of Impact Investing at SVA, Ian Learmonth, said the investments of this level make it possible to fund projects at the scale needed to achieve significant impact.
“There is a great need for social and affordable housing in Australia, with a shortfall of over 500,000 dwellings across the country,” Learmonth said.
“Through impact investment there is an opportunity to bring new capital to the issue to achieve both social and financial returns, and we’re actively looking for more deals in this space.
“This partnership with Horizon Housing will provide greater choice and security of tenure for social housing tenants, helping them to transition to the private housing market. It will also provide much needed additional supply of social and affordable housing for Queensland.”
SVA and Horizon Housing have also secured a majority stake in Australian Affordable Housing Securities (AAHS), an entity responsible for managing compliance of National Rental Affordability Scheme incentives for over 2,500 properties.
Through AAHS, SVA and Horizon Housing plan to develop innovative financing products to assist low income earners achieve home ownership.
In September last year HESTA committed $30 million to create an impact investment fund, which was said to be the single largest investment of its kind in Australia to date.