Conscious Investment Management – backed by the Paul Ramsay Foundation (PRF) and Future Super – has acquired a portfolio of Melbourne affordable and social housing investments.
The 307 newly completed properties are setting it back $150 million.
They will be managed by Housing First for an initial 10 years.
All up, they are expected to accommodate over 500 people, CIM director Alex Debney said.
Forming part of the state government’s New Rental Development program, 123 dwellings have been constructed, with the balance of the properties due for completion over the next 12 months.
Tenants will be sourced from the Victorian Housing Register, which currently has more than 50,000 people on its waitlist, the investor said.
“Seventy five per cent of tenants will be selected from the Priority Access list, which includes people currently experiencing homelessness, escaping domestic violence or living with disability,” it added.
“Apartments will be dispersed within large…buildings, with no more than 20pc of each building being designated as social and affordable housing” (story continues below).
Mr Ramsay, who established Ramsay Health Care, died in 2019 – leaving $3 billion of his fortune to the foundation, which oversees philanthropic initiatives.
CIM holds a growing housing portfolio including units in Abbotsford’s The Park House (pictured, top).
Last August, it partnered with PRF, Australian Philanthropic Services and For Purpose Partners, to develop 60 disability accommodation apartments – a $48m outlay.
“We are delighted to be working with HousingFirst and the Victorian Government to provide much needed homes for vulnerable Victorians,” CIM chief investment officer, Matthew Tominc said .
“Social housing has historically been a challenging area for private capital investment to receive market rate returns,” he added.
“Through this innovative investment structure, we hope to prove up a model that provides government with long term savings, social housing tenants with access to secure housing and private investors with market rate property returns”.