$300m affordable housing project gets green light: NHFIC

This is the first project under a broader $300 million financing commitment from the National Housing Finance and Investment Corporation (NHFIC) through a partnership with AXA IM Alts and community housing provider St George Community Housing (SGCH).

The NHFIC is set to provide a loan of around $150 million along with additional funding from AXA IM Alts (acting on behalf of clients) under the first stage of a larger financing commitment for the Westmead housing project.

The SGCH’s role will see it managing the housing delivered under the partnership with AXA IM Alts.

The new homes built under this project will include market and affordable build-to-rent dwellings, with the development located within the new Westmead Health and Innovation Precinct.

Additionally, the new homes will include affordable housing aimed at key workers from the nearby hospital.

Work on the project is expected to start in early 2023, with a completion date scheduled for 2025.

NHFIC chief executive, Nathan Dal Bon, stated: “This is a ground-breaking agreement that demonstrates how a community housing provider and institutional capital have come together to deliver affordable housing at scale under a replicable model.”

Minister for Housing, Julie Collins, said that the partnership is an “example of leveraging government funding to attract institutional investment in affordable housing”.

“We want to see affordable housing where it’s needed, and more workers at the hospital will soon be able to live conveniently close to their place of work,” Ms Collins added.

Group CEO of SGCH, Scott Langford, added: “We are excited to be bringing together institutional capital with capability of major partners and the support of government to increase the supply of affordable and sustainable housing through regulated not for profit community housing.”

Commenting on the new partnership, head of Australia AXA IM Alts, Antoine Mesnage, stated the commitment to the Westmead project along with the strategic partnership will allow the supply of high-quality, sustainable, and affordable new homes.

NHFIC releases draft legislation

Earlier this month, the NHFIC has widened the scope of its investments to allow finance to be used to “attract more private capital into the social and affordable housing sector”.

These changes come off the back of the government’s announcement of a National Housing Accord that is set to bring together the superannuation, construction, and local government sectors to deliver 1 million new homes over the next five years.

[RELATED: Draft legislation to widen social housing investment]

Written by Adrian Suljanovic

Last Updated: 25 November 2022

Published: 28 November 2022