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Cbus commits $500m towards affordable housing
Cbus Super has committed up to $500 million over five years to the Housing Australia Future Fund as part of the National Housing Accord.
The move was “an extension of the fund’s leadership in the sector,” said Cbus Super chief executive Justin Arter.
“We have worked with the National Housing Finance and Investment Corporation (NHFIC) since 2018 to help develop financing models that deliver for Cbus member returns and also deliver affordable financing for Community Housing Providers (CHPs),” Arter stated.
“NHFIC’s work has been an incredible success and we are determined to help supercharge the financing of new social and affordable housing across the country. Of course, Cbus Super’s commitment is subject to the finalisation of commercial terms for the HAFF, but we are confident of reaching terms that will be in the best financial interest of Cbus Super members while unleashing billions in new funding for community housing projects.”
A long-term investor in the property sector, Cbus reiterated its commitment towards meeting the best financial interests of its members in investing in the HAFF.
Last week, the Super in the Economy report by Frontier Advisors, commissioned by Industry Super Australia (ISA), had noted such investments with meaningful Government backing through schemes like land concessions could deliver stable long-term returns for super funds while addressing a social and economic need.
Current figures suggest just 4% of housing stock in Australia was classified as affordable. An estimated 671,000 dwelling shortfall was expected in the next ten years.
Cbus Super deputy chief investment officer, Brett Chatfield, added: “This new fund, if we can get the settings right, will be an even greater leap forward for the provision of social and affordable housing. The early work of NHFIC has shown that we can align financial returns for our members with an affordable financing stream for Community Housing Providers.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist at Money Management and Super Review, with a focus on financial advice, investments, funds management, and superannuation. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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