Australia’s Clean Energy Finance Corporation (CEFC) has invested A$100m (€60m) in a new affordable build-to-rent (BTR) strategy in Australia managed by AXA IM Alts.
The strategy is initially targeting up to 3,000 apartments, at least half of which will be offered at a discount to equivalent market rents for means-tested tenants, in key worker employment hubs in Australia’s major metropolitan cities.
The first investment is a 397-unit residential development in Westmead, in Sydney’s West and is expected to be completd this year.
AXA IM Alts has partnered with Australian community housing provider, St George Community Housing, to manage the Westmead property from completion along with other future projects in NSW.
Ian Learmonth, CEO of CEFC, said: “This investment brings the benefits of sustainability to an important segment of Australia’s residential sector, at scale.
“Making homes more resilient, healthy and comfortable by lifting sustainability standards helps meet our current and future housing needs as we move towards net zero emissions and unlocks the advantages of sustainable living for more Australians.”
Michael Di Russo, CEFC head of property, said the strategy created a replicable model for the delivery of affordable housing into the market, while leading with sustainability for tenants who have traditionally been locked out of the benefits of clean energy technologies and sustainable living.
Antoine Mesnage, head of Australia at AXA IM Alts, said: “The CEFC’s investment is an important milestone in the continued success of our Australian affordable housing programme and our wider global residential strategy, which we intend to grow alongside new capital partners.”
Including the CEFC investment, AXA IM has raised A$320m in its Australian BTR affordable housing strategy.
Mesnage said AXA IM Alts had identified other opportunities to grow and diversify the portfolio initially in Sydney, Brisbane and Melbourne.
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