Infrastructure
| Sector | Infrastructure |
| Sub-sector | Real estate |
| Location | Australia |
Driven by an insufficient supply of appropriate housing to meet needs, these households are either experiencing homelessness,2 living in overcrowded homes, or spending over 30 per cent of their income on rent.3
Six out of 10 people seeking help from Australian homelessness services are women,4 including an increasing number of older women.5 In addition, almost 3,000 people with disabilities under 65 live in aged-care facilities, and more than 30 enter aged care every month,6 because they don’t have other housing options.
Local is an Australian build-to-rent residential developer and operator established by its two principals and a Macquarie Asset Management joint venture in 2021 to create new build-to-rent housing at attainable rental levels, boosting housing supply and helping to alleviate housing shortages and stress. Local is aiming to manage over 5,000 sustainably designed7 apartments by 2026 (including those completed and under development) and is planning for at least 10 per cent of these homes to create positive social impact.8
Local’s impact housing is focused on three groups of people: key workers such as nurses and those in the hospitality sector; people living with a disability; and women over the age of 55 who are at risk of homelessness. Where demographics support demand, Local will also include apartments designed to meet the Liveable Housing Australia Gold standard – which provide better access, circulation space and facilities – to provide viable housing for older Australians seeking to age in place.
Local is also exploring a separate strategy of providing up to one-third impact housing (where rents are two-thirds of the prevailing market) in select projects and locations, partnering with like-minded investors.
Outcome
Two Local projects totalling around 900 apartments are currently under construction in the Melbourne neighbourhoods of Kensington and South Melbourne and are due to open from 2024.
Between these projects, Local will provide 83 affordable, social and specialist disability accommodation apartments, with partnerships with the Women’s Property Initiatives – a not-for-profit registered community housing provider which supports women over the age of 55 at risk of, or experiencing, homelessness – and Home in Place – a specialist disability accommodation provider.
Local is a great example of how impact housing can be strategically integrated into the private rental housing sector, creating genuine, diverse communities with positive social impact, while maintaining project-level returns.”
Jelte Bakker
Global Head of Opportunistic Real Estate
Macquarie Asset Management
At Macquarie Asset Management, we view sustainability as part of our fiduciary duty to protect and grow our clients’ assets. This focus also helps us generate positive outcomes for our investee companies and the communities they serve. Our latest Sustainability Report outlines the progress we have made over the past financial year.
