Australia’s largest superannuation fund AustralianSuper said Thursday it has picked a 25 per cent stake in property developer Assemble Communities and will invest in the latter’s pipeline of projects.
Financial terms of the investment were not disclosed.
“This investment will enable us to grow our innovative ‘rent with the option to buy’ property portfolio, known as the Assemble Model, which addresses housing affordability and access to homeownership. Over time, the investment will support us to deliver build to rent assets,” Assemble said in a statement.
Assemble managing director Kris Daff said the firm now has the ability to scale to meet market demand for affordable housing and build to rent opportunities.
AustralianSuper’s head of property Bevan Towning said he expected the investment to provide good long-term returns for members while also addressing a significant social issue.
Assemble offers alternative housing pathways that meets the needs of low and moderate-income Australians by providing tenure certainty, the ability to live well, and the ability to form a strong connection to their community.
Make Ventures, which acquired Assemble Communities in 2014, is co-investing up to A$50 million and making available the majority of their project pipeline—in excess of 4,000 dwellings and 120,000 sq metres of non-residential programming—to be delivered by Assemble Communities.
AustralianSuper manages more than A$165 billion of members’ retirement savings on behalf of more than 2.3 million members from around 280,000 businesses.