The Ramsay Foundation and Melbourne-based Conscious Investment Management have teamed up to invest $48 million into disability accommodation, a specialist housing sector which is gaining scale through the increasing attention from institutional players and family offices.
Playing a key role in bringing the deal together is social impact investment house For Purpose Investment Partners, co-founded by prominent venture capitalist Mark Carnegie and Michael Traill. Former National Australia Bank boss Andrew Thorburn joined the outfit earlier this year as well.
On the receiving end is Summer Housing, an early mover in the emerging sector, which will direct the funds into 60 specialist disability units.
"By investing in disability housing alongside Summer Housing, we can significantly improve our residents’ quality of lives," said Conscious Investment's Matthew Tominc.
"We hope to grow this partnership to continue to help address the acute accommodation under-supply for people living with disability."
The commitments from Ramsay and CIM's Impact Fund – former Swisse boss Radek Sali is one of several family office investors backing the fund – will help fund the creation of purpose-built apartments across a number of developments under way in Melbourne Adelaide and Brisbane.
Already Summer Housing has raised more than $300 million from a variety of sources, with 370 dwellings financed. Institutional investors are moving into the sector: Macquarie is among the early birds along with boutique investment house Lighthouse Infrastructure.The housing is specially developed for people living with a disability, with rental streams backed by the National Disability Insurance Scheme. Industry forecasts are expecting the creation of a $5 billion asset class.
There is a large unmet demand. Some 28,000 people – around 6 per cent of those who fall under the NDIS – will require the specialist housing. Taking into account existing facilities, it is estimated new dwellings will be required to accommodate 12,300 participants in the scheme.
So far some 980 new or refurbished SDA dwellings have been created, with a little more than 4000 dwellings enrolled in the scheme. When fully exercised, the housing scheme payments are expected to total $750 million annually, with just 20 per cent of that being paid out so far.
Summer Housing chief executive chief Dan McLennan pointed out the particularly grim situation for more than 5000 people, all under the age of 65, who are forced to live in nursing homes because there are no other appropriate housing options.
The freshly minted agreement with the impact investment consortium would give at least some of those people "the choice to live on their own, or with someone of their choosing, with independence and with the ability to fully participate in the community", Mr Mclennan said.
While Summer Housing's effort has so far been focused within existing larger apartment projects in capital cities, it is keen to extend that.
"How can we come up with scalable solutions that enable institutional capital to be applied toward creating housing not just in capital cities but throughout the whole of Australia. It is a problem that isn’t confined to our cities," Mr McLennan told The Australian Financial Review.
"We’ve got a long way to go in terms of existing pipeline and the market itself still has a lot of scope for growth. I think every institutional investor we’ve engaged with has appetite for significant scale in the market. They are keen for the production of opportunities to finance."
Article via The Australian Financial Review: https://www.afr.com/property/residential/powerbrokers-make-impact-in-disability-accommodation-20200817-p55miz
29 October 2024 - For Purpose Investment Partners (FPIP) has released its Impact Report 2024. A leading social impact investment fund manager, FPIP voluntarily reports information about its approach to impact measurement and the performance of portfolio companies and projects. With a commitment to deliver financial value and social impact without compromise, FPIP are pursuing a broader ambition to establish social impact investments as a viable asset class for large-scale transactions across the Australian market.
Michael Traill, Executive Director said “Publishing transparent and accountable information in our Impact Report 2024 is a demonstration of our thought leadership in impact investing. We believe transparent reporting is a factor in building the understanding and assurance amongst investors to unlock significant amounts of capital that can transform the social sector.”
Mr Traill, who chaired the Federal Government’s Social Impact Investing TaskForce, further explains, “Ultimately, we need to get to scale to tackle the sector-wide transformation that is needed in areas including aged care, disability, education and housing. Institutional investors need to know that impact fund managers are transparent, accountable and creating value. Proofpoints like our annual Impact Report, are part of the assurance that investors require.”
Additionally, FPIP were one of the first Australian signatories to the Operating Principles for Impact Management (OPIM) and were independently assessed by BlueMark against these principles.
Ben Smith, Head of Impact Investing at the Paul Ramsay Foundation says "As early backers of FPIP, we are pleased to see the organisation's progress and second impact report publication. FPIP's inclusion of third-party assurance creates the comfort that impact investors seek. We know from global practice that transparency and impact integrity are key ingredients to establish confidence and progress markets."
Mr Traill continues “Our values and commitment to transparency led us to seek external verification that provides investors with confidence that we have been benchmarked and tested to a global standard.”
“We are focused on continuous improvement and this was evidenced by a lift in ratings across three of the eight principles this year. As a team we will continue to work in close partnership with our investees to increase our collective impact. We are demonstrating Australian impact to a global standard.”
The Impact Report 2024 is available here.
ENDS
Michael Traill, Executive Director and co-founder of For Purpose Investment Partners is interviewed on the latest With Purpose podcast by David Knowles. The episode overview is 'Michael Traill AM made his name at Macquarie Bank as a successful private equity investor, before jumping ship to foster social entrepreneurship in Australia as founder of Social Ventures Australia. This journey led him to the field of impact investing, a field in which he is now acknowledged as a pioneering leader and elder statesman. Today, Michael is Executive Director of For Purpose Investment Partners and Chair of the Paul Ramsay Foundation. In this episode, Michael reflects on what he has learnt during his career, and shares unique insights in relation to investing, leading, governing and tackling a wide variety of social issues.’
NAB, CBA and Bank Australia provide $260m joint debt facility
Deal highlights
· $260m facility will support the acquisition of Signature Care
· Signature Care has eight operational residential aged care facilities, and a growth pipeline of six development sites
· The transaction includes $35m of social loan notes provided by Qantas Super and Australian Ethical Investment.
7 August 2024 - NAB, CBA and Bank Australia are backing For Purpose Investment Partners (For Purpose), Australia’s pioneering impact investment manager, with over $260m of debt facilities. The facility will support the For Purpose Aged Care Australia (FPACA) platform for the acquisition of Signature Care.
FPACA is a not-for-profit aged care platform focused on achieving excellent health and wellbeing outcomes for residents and attracting and retaining quality staff. The platform brings together Luson Aged Care and Signature Care and will have over 2500 beds creating a top 15 Australian aged care provider. The support of NAB, CBA and Bank Australia follows the landmark commitment of institutional investors Qantas Super and Australian Ethical Investment, announced in April 2024.
Announcing the commitment Michael Traill, Executive Director of For Purpose said “We are delighted to partner with NAB, CBA and Bank Australia to support the expansion of our aged care platform. This further expands our existing relationships with NAB and CBA and we are excited about our first partnership with Bank Australia. With this debt facility the banks are demonstrating their leadership in financing social impact in Australia while supporting better outcomes for thousands of Australians in aged care.
“The inclusion of $35m in social loan notes is a further endorsement of the strength of the FPACA platform to deliver institutional grade long term financial returns and social impact.”
Toby Hall, Chair of FPACA said “We have an ambition of transforming the aged care sector to have a broader social impact that starts with person-centred care and a valued workforce. The support of the banks, preceded by that of institutional investment, demonstrates the value of aged care and the role it plays for Australians and their families.”
John McCarthy, Head of Corporate Health, NAB said “NAB is delighted to be partnering with FPACA as they continue to support the aged care sector and bring critical social infrastructure to regional locations. As a banker to the seniors living sector for over 10 years, I know how important the investment in quality aged care is to communities. I’m proud that the NAB Corporate Health team has played a role in enabling such an investment and look forward to seeing it come to life.”
General Manager, Major Client Group CBA Craig McQuillen said “We are proud to support For Purpose in their ambition to transform the aged care sector and create positive social impact. The deal features a unique social loan note structure which aligns investors to long-term returns and is the largest transaction of this nature in our Business Bank to date.”
Bank Australia Head of Impact Lending Tim Von Ess said ‘‘Through Bank Australia’s impact lending we aim to meet our customers’ expectations that their money is used to generate positive social and environmental impact. We’re pleased to be involved in FPACA’s acquisition of Signature Care and helping to increase in the supply of high-quality aged care accommodation and care for older Australians.’’
The commitment supports the previously announced strategic acquisition of Signature Care by FPACA. With eight operating aged care facilities, the potential growth pipeline includes six development sites across Australia with a focus on regional centres.
ENDS
For Purpose Investment Partners acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander people.
We believe that diversity, equity and inclusion at For Purpose Investment Partners are critical in our efforts to create significant social impact. Diversity in the team allows us to better represent the diversity of thought and experiences of the communities that we are aiming to serve, promotes a healthy and thriving working environment, and delivers innovative and sustainable outcomes for our communities, our people, our investors and our partners.
