The Clean Energy Finance Corporation (CEFC) has invested $100 million (USD 62 million) in an Australian build-to-rent affordable housing strategy of Paris-based property investor AXA IM Alts, which will use the funds to build 3,000 apartments in Sydney, Brisbane and Melbourne.
The first under-construction development in Westmead, Western Sydney, which is expected to be completed in 2025, will offer 397 units, with the capacity to home 1,000 residents in affordable housing built to be energy efficient, fully electric and capable of being powered by renewables while driving reductions in embodied carbon.
CEFC Head of Property Michael Di Russo said bringing the benefits of sustainability to all sectors of the residential market is an important part of broader decarbonisation of Australia’s building sector and reducing our national emissions.
“This investment demonstrates that sustainability and affordable housing are not mutually exclusive, and that unlocking the benefits of energy efficiency for affordable housing can accelerate the energy transition more equitably,” Di Russo said.
Future projects will target a minimum 5-star green star building (GSB) certification and a minimum average 7.5 star Nationwide House Energy Rating Scheme (NatHERs), home energy rating.
The national construction code (NCC) requires all new Australian houses and apartments to meet a minimum energy efficiency rating of 7 NatHERs stars.
AXA IM Alts Head of Australia Antoine Mesnage said the CEFC investment reflects a shared approach to addressing the shortage of good quality, sustainable housing stock for key workers in Australian cities.
“In supporting the transition to a decarbonised economy, we are targeting market-leading environmental and social credentials across the assets that aim to deliver strong ESG and impact outcomes, and long-term value to our investors as well as the local community.”
A national energy and emissions audit conduction by the Australian government in 2020, found that buildings account for more than 50% of Australia’s electricity use and almost 25% of emissions across the economy.
The CEFC has made more than $1.2 billion in lifetime commitments to improve energy efficiency and lift sustainability in Australia’s residential property market. Between 2015 and 2017, the CEFC committed a total of $170 million to St George Community Housing (SGCH) for the construction of up to 500 energy efficient homes with an average NatHERS rating of 7.5 stars, including 300 developed for the NSW Government’s Social and Affordable Housing Fund.
The CEFC also invests alongside co-financiers through its specialist $1 billion Household Energy Upgrades Fund, to help homeowners fast track their transition to cheaper, cleaner energy, while lowering their carbon footprint.
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