investments with impact: affordable housing

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At HESTA, we invest in and for the people who make our world better. We call this HESTA Impact.

 

We believe that it’s possible to achieve strong investment returns and contribute to a healthier planet and society. That belief shapes what we choose to invest in on your behalf.

Ever wondered what that looks like in practice?

 

Building affordable housing
 

HESTA is proud to be an investor in the National Housing Finance and Investment Corporation (NHFIC).

The NHFIC is dedicated to improving housing outcomes for Australians with a particular focus on affordable housing.

HESTA invested in NHFIC’s first Sustainability Bond, which raised around $400 million in loans and grants through a consortium. The funds raised from this bond help registered community housing providers construct new social and affordable dwellings by providing cheaper, longer-term financing. The investment will support the delivery of around 600 social homes, 450 affordable and private rental homes and 50 supported disability accommodation places across sites in Brighton, Flemington and Prahran in Victoria.

 

Affordable housing development in Brighton, Victoria

 

 

HESTA has also invested in NHFIC’s Social Bond issuance, helping low income and vulnerable Australians access affordable housing.

Investments in assets like the NHFIC bonds enable HESTA to meaningfully contribute to SDG11: Sustainable Cities and Communities.

 

HESTA members can be proud

HESTA’s General Manager of Responsible Investment Kim Farrant says: 

“Superannuation funds can play a role in helping to improve the supply of affordable housing for Australians through investing in this area. HESTA is pleased to be one of the enablers of this critical infrastructure while delivering strong and sustainable returns to help our members grow their super.”

NHFIC CEO Nathan Dal Bon says NHFIC’s first sustainable bond brought together the not-for-profit, public, private and industry sectors to support and deliver more social and affordable housing.

“With a 15-year maturity, it’s our longest-term bond to date and brings the total value of NHFIC's social bonds issued to over $1.5 billion since the corporation was established. It is another key milestone in NHFIC’s objective to build a new asset class focused on supporting subsidised housing,” Mr Dal Bon says.

 

 

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We’re creating better futures for our members

Find out more about HESTA Impact.