A new model for worker housing comes to western Sydney

Highline is located just 500m from Westmead Hospital. Westmead aerial image courtesy of hinfra.health.nsw.gov.au.

SGCH, New South Wales’ largest community housing provider, has today announced that it is partnering with specialist infrastructure investment manager, Lighthouse Infrastructure to acquire key worker housing close to Westmead, the Children’s Hospitals and Western Sydney and Sydney Universities.

The landmark deal will see Lighthouse provide $59 million initial funding to SGCH Keys, a registered charity and subsidiary of SGCH Group. The funds will be used in the acquisition of 85 apartments in Westmead to be rented to key and essential workers.

SGCH will use its access to unique and efficient financing from Lighthouse to enable key workers to rent a new high-quality affordable home.

SGCH has brought together capital and capability to assist key workers who are struggling to find housing they can afford in Sydney. It is hoped that a number of the key workers who will call these properties home will be able to take advantage of rent savings over time to springboard to own a home of their own in the future.

The 85 properties purchased are valued at $59 million and are within the Highline development completed this year by leading Sydney developer and builder, Deicorp.

Highline is located just 500 metres from Westmead Hospital and 100 metres from Western Sydney University campus.The tenancies will be managed by SGCH, with key worker tenants meeting the criteria of low to moderate income bands, and working in designated sectors such as emergency services, health and education.

This marks the first investment by SGCH into key worker affordable housing as distinct from social housing, which requires further government support. The deal leverages SGCH’s expertise and experience as managers of 7,000 social and affordable homes across Sydney.

This deal builds on Lighthouse’s success as an investor in the disability housing sector, having created Australia’s leading institutional portfolio of Specialist Disability Accommodation (SDA) assets under the Federal Government’s National Disability Insurance Scheme (NDIS). Following this latest investment, Lighthouse’s portfolio of social accommodation assets is valued in excess of $300 million. Lighthouse has over $500 million in total funds under management.

Speaking about the new partnership, Scott Langford, CEO of SGCH said the new partnership with Lighthouse was an alignment of purpose that delivered scalable housing solutions for key workers.

“A key part of our strategy is to grow the impact of community housing through financing solutions that attract private capital, both directly and through third parties. We partner with values aligned organisations who can help us to deliver more homes that will create social and economic opportunity for more Australians.”

Mitch King, Managing Director, Lighthouse Infrastructure, said the transaction was consistent with Lighthouse’s mandate from its institutional clients to deliver socially responsible investments.

“The COVID-19 pandemic has highlighted the vital role key workers play in providing much needed essential services to our society. This form of investment in real assets provides key workers access to rent affordable housing and live close to their workplace,” he said.

“The Lighthouse funding model will be scaled further with other community housing partners to fund key worker housing in other states for the institutional investor market.”