Affordable build-to-rent developer Assemble has added more firepower to its pipeline with the AustralianSuper-backed acquisition of three new sites across Melbourne for its build-to-rent-to-own model.
The superannuation fund has previously backed the developer’s Assemble Futures projects, which aims to develop a pathway to home ownership for moderate-income households.
Assemble’s builder partner, Hacer Group, recently broke ground on its first super-backed build-to-rent-to-own project, a 199-apartment development at 15 Thompson Street, Kensington.
AustralianSuper also provided cornerstone investment in the 173-apartment development at 4 Ballarat Street, Brunswick.
Assemble managing director Kris Daff said the superannuation fund had extended its funding to acquire three new sites, bolstering the Assemble Futures pipeline with a further 1000 homes.
The investment would help Assemble to tackle ongoing affordable housing challenges and facilitate more people into home ownership, Daff said.
“Breaking ground on Assemble Futures project at 15 Thompson Street means more people will have the option to live in and eventually own environmentally sustainable, high-quality homes in a well-connected suburb.
“Our residents will be able to save and budget for their first home with certainty, without the worry of volatile rental market fluctuations, or being priced out of the market.”
The three new sites were acquired with planning approvals already in place, including a 7246sq m site at 370 Victoria Street at Brunswick, a 6632sq m site at 519-547 Sydney Road, Coburg, and a 13,814sq m site at 11-19 Whitehall Street at Footscray, once held by Banco Properties.
AustralianSuper tipped in $364 million for the acquisitions for Assemble Futures, of which it has a 25 per cent stake.
AustralianSuper head of property Bevan Towning said the investment would help the superannuation fund’s members to “achieve their best financial position in retirement” while helping to provide a pathway to home ownerhsip.
“We are delighted to have committed to a strong pipeline of future developments which will not only benefit residents but help us to deliver on our purpose for members,” Towning said.
“The Assembe Futures model provides residents with much-needed certainty in terms of future purchase price, the security of a long-term rental agreement and flexibility to rent now and purchase later if they wish.”
The build-to-rent-to-own developments at 15 Thompson Street and 4 Ballarat Street were slated for competition mid-2024, while the three new projects are expected to be completed by 2027.
