Australia: Superannuation fund AustralianSuper has completed its first build-to-rent-to-own housing development (BTRTO), located in Melbourne’s Kensington suburb.
Residents have now moved into 15 Thompson Street which was built in conjunction with developer and operator Assemble.
The BTRTO arrangement enables residents to secure their rent and purchase price for up to five years and have the option to buy the property at any stage at an agreed value. Residents are also offered optional money coaching to help them budget to purchase their home.
AustralianSuper made a cornerstone investment in Assemble in 2020, acquiring a 25 per cent stake. It has injected around $500 million in Assemble’s BTRTO projects that will construct more than 1400 homes by 2027.
A two-bedroom apartment with one bathroom, for example, is rented for $715 per week. Residents can purchase it for $750,000 if they choose to buy within the first year of the five-year timeframe.
The building is 100 per cent electric and has a seven-star Nationwide House Energy Rating Scheme (NatHERS) rating.
Construction on a second BTRTO development in Melbourne’s Brunswick is now underway, with projects in Coburg and Footscray also in the pipeline.
AustralianSuper chief executive Paul Schroder said as a signatory to the Housing Accord, “we are committed to finding scalable solutions that deliver strong long-term returns for members while also responding to the housing supply crisis. Investors like AustralianSuper are well placed to contribute to housing supply, but we’re just one piece of the puzzle. Australia’s housing supply crisis needs collaboration and new solutions, and projects like Thompson Street demonstrate the kind of fresh thinking needed to create more homes for Australians now and strong, long-term returns for members in the future.”
Assemble managing director Kris Daff said: “We are working to bring our unique housing model to more communities, providing more Australians with an alternate pathway to home ownership, and offering them stability and financial surety in a fluctuating housing market.”
