This merger, publicized today, marks the continuation of a two-year collaboration aimed at unlocking substantial institutional capital for affordable housing projects. Post-merger, Assemble offers institutional investors promising "scalable opportunities" for investing in diverse housing projects with appropriate risk-adjusted returns.
Paul Schroder, CEO of AustralianSuper, highlighted that the merger will address a critical issue for institutional investors, offering pathways to invest in multiple housing options delivering risk-adjusted returns suitable for members. AustralianSuper had initially taken a major stake in Assemble in 2020, committing to upcoming projects under Assemble’s supportive purchase pathways.
Founded in 2010, Assemble is known for its focus on affordable housing developments. Meanwhile, Super Housing Partnerships (SHP), established in 2022, targets increasing Australia's housing supply through collaborations with major institutional investors. Their partnership initially kicked off with a project focusing on Specialist Disability Accommodation (SDA) homes in Melbourne.
Assemble aims to "originate, deliver, and manage well-designed homes for renters and homebuyers across Australia," including options like affordable, social, essential worker, specialist disability, and market-rate rental housing. Their approach is integrated through build-to-rent and build-to-rent-to-own to cater to a variety of homeownership models.
Despite maintaining their controlling stakes, AustralianSuper and HESTA are also welcoming new institutional partners for large-scale housing investments. The idea, according to the developer, is to offer diverse long-term investment opportunities that contribute to the national housing stock.
Assemble stated, “By providing a spectrum of mid-market housing investment opportunities, we aim to tackle the challenge of scaling housing investments for institutional investors, presenting a fresh answer to Australia’s housing supply dilemma.”
The leadership of Assemble will see Kris Daff continue as managing director, while Carolyn Viney, previously the CEO of SHP, steps into the role of chief executive at Assemble. Viney remarked, “Together, our combined expertise will innovate housing investment, boosting the supply of high-quality homes tailored for a range of Australians struggling with housing affordability.”
Daff reiterated, “The merger illustrates our dedication to resolving the housing crisis. Backed by substantial industry funds, we can scale up innovative housing models developed over years, benefiting both our investors with stable returns and offering valuable housing options for Australians.”
Source: Adapted from an article by Patrick Buncsi, originally published on 24 July 2024.
