Antoine Mesnage

AXA IM Alts, a global leader in alternative investments with c. €184 billion (c. A$285 billion) of assets under management^[1], has announced a significant commitment on behalf of clients to affordable rental housing, launching its new Australian Build-to-Rent (BTR) strategy.

In its first landmark project in Australia, AXA IM Alts will focus on affordable, and market built to rent housing at Westmead, in Western Sydney through a partnership with St George Community Housing (SGCH). 

Establishing a long-term strategic partnership with leading community housing organisation SGCH, AXA IM Alts’ commitment is supplemented by funding from the National Housing Finance and Investment Corporation (NHFIC), as part of a total umbrella commitment of A$300 million from NHFIC, aimed to support the partnership in delivering multiple projects including the first project in Westmead of c. 350 mixed tenure social and affordable dwellings. 

The Westmead project will be managed by SGCH and delivered by leading NSW developer and builder Deicorp. It is strategically located adjacent to the new Westmead Health and Innovation Precinct, one of the largest health, education, research and training precincts in Australia, and will significantly increase access to affordable housing for key workers in Western Sydney.  

Upon completion in 2025, the property aims at offering best-in-class sustainability credentials, targeting to be operationally net zero and a 5-star Green Star rating, equivalent to the international BREEAM Excellent rating.  

Antoine Mesnage, Head of Australia at AXA IM Alts, commenting on the new partnership: “Our commitment to the Westmead project, along with our strategic partnership with SGCH and NHFIC will allow us to bring forward much needed supply of high quality, sustainable and affordable new homes, while aligning with our broader ambition of investing with purpose to help improve society and quality of life. This transaction and the launch of AXA IM Alts Australia’s build to rent strategy allows us to extend our global residential conviction and leverage our track record in the sector to meet the long-term investment requirements of our investors.”  

“Westmead is an area with one of the highest concentrations of key workers nationally and is set to benefit from the expansion of the surrounding health and innovation precinct over the coming decade. We recognise the need for quality key worker housing in major employment hubs across Sydney, and our first project in Westmead will offer a solution to these workers who are essential in supporting the needs of the community.” 

Scott Langford, Group CEO of SGCH, added: “We are excited to be bringing together institutional capital with capability of major partners and the support of NHFIC to increase the supply of affordable and sustainable housing through regulated not for profit community housing. Thriving communities and vibrant economies depend on a diversity of people being able to live, learn, work, and play to create great places. 

AXA IM Alts has a global track record investing in affordable housing – with over A$35 billion invested in the residential sector globally – and this has followed through into their commitment to partner at scale in Australia. We thank NHFIC for their catalytic role in mobilising this institutional investment that will create more affordable homes for rent.” 

Nathan Dal Bon, CEO of NHFIC, said: “This is a ground-breaking agreement that clearly demonstrates how NHFIC can partner with the community housing sector and institutional investors to find innovative new ways to deliver much-needed affordable housing.” 

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[1] Source: AXA IM Alts unaudited data as at end of June 2022 

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