CEFC, AXA IM Alts Invest $100M In Sustainable Housing

The Clean Energy Finance Corporation (CEFC) has committed to a landmark $100 million investment in a pioneering initiative led by AXA IM Alts to deliver affordable, sustainable housing across Australia. The investment is part of a new build-to-rent (BTR) strategy that seeks to integrate clean energy technologies into the housing market. The emphasis of the initiative lies in providing high-quality homes in Australia's largest cities – Sydney, Melbourne, and Brisbane – with a focus on reducing energy costs, cutting emissions, and focusing on housing low-income residents.

The project will offer 3,000 apartments, and half of the apartments will be available at below-market rent to means-tested tenants. This would be a first step in providing affordable housing that would alleviate some of the shortage occurring in urban cities, particularly with regard to such essential workers as healthcare professionals, teachers, and emergency responders. By targeting hubs of employment, this initiative secures sustainable living for people working to keep key Australian cities ticking over.

These homes under this plan shall be constructed according to International Energy Agency (IEA) zero-carbon building guidelines. There shall be preference for energy efficiency, electrification, and usage of renewable sources of energy. The reduction in environmental impact and reduced consumption of energy should reduce electricity consumption and the overall electricity bills. The homes will achieve at least a 7.5-star NatHERS (Nationwide House Energy Rating Scheme) energy rating and target a 5-star Green Star certification, which are the highest standards for sustainable and energy-efficient residential construction.

The first major development under this strategy is a 397-unit project in Westmead, a suburb of Sydney. This project, scheduled for completion in late 2025, will accommodate around 1,000 people, with priority being given to key workers in the healthcare, teaching, and emergency response sectors. This development is important not only for its contribution to sustainable housing but also for its emphasis on providing affordable accommodation for individuals who are vital to the functioning of these communities.

The project focuses on sustainability while dealing with another burning issue that is housing affordability. Residential buildings consume a major chunk of carbon emissions and electricity consumption in Australia. The CEFC states that residential buildings use nearly 24% of the electricity used in Australia and 10% of its total carbon emissions. Through the energy-efficient homes investment, the CEFC aims to bring down these statistics while also making homes comfortable, healthy, and resilient to the impacts of climate change.

CEFC has long been an advocate for energy-efficient and sustainable housing. Throughout its lifetime, the CEFC has committed more than $1.2 billion to energy efficiency and sustainability projects in the residential sector. This comprises a previous partnership with St George Community Housing (SGCH), a not-for-profit housing provider, which saw the construction of 500 energy-efficient homes between 2015 and 2017. SGCH is also involved in managing the new Westmead development, bringing its extensive experience in delivering energy-efficient housing to this project.

CEFC Chief Executive Ian Learmonth said the investment marked an important step toward bringing sustainability to a broader segment of the residential market. He pointed out that making homes more resilient, comfortable, and energy-efficient would not only meet the housing needs of today but also help to achieve the goal of net-zero emissions in the future. Michael Di Russo, Head of Property at CEFC, added that this project sets new benchmark standards in sustainable residential construction, opening up similar projects for the future.

The cooperation between AXA IM Alts and CEFC is also considered a model for further sustainable housing initiatives across the country. This will be a replicable approach for scaling up the housing demands of other cities and regions in Australia, integrating energy-efficient technologies and renewable energy into affordable housing. Sustainable living, therefore, would not be an expensive luxury for the high-income household but something that can be achieved by all, especially those who need it.

Head of Australia at AXA IM Alts Antoine Mesnage noted the initiative directly addresses the deficit of quality, sustainable housing for key workers. It also serves a broader objective toward a decarbonized economy. It is an approach to housing that is energy efficient and cost effective, so that it's affordable but also sustainable, which offers a model for future developments, balancing both environmental and social objectives.

In conclusion, this $100 million investment by CEFC and AXA IM Alts is an important step towards the development of affordable, sustainable housing in Australia. Focused on energy efficiency and renewable energy with the aim of providing affordable accommodation for low-income tenants, it addresses two big issues: affordability in housing and a decarbonized, sustainable economy. The Westmead project and its successors are set to be transformative, demonstrating that sustainability and affordability can go hand in hand.