The Paul Ramsay Foundation has committed as a cornerstone investor in Conscious Investment Management's (CIM) latest $200 million social and affordable housing fund, launched as a follow-up to a pioneering fund in 2021 that has provided homes for 400 tenants in Victoria.
The impact investment fund manager has announced the first close on its CIM Social Housing Fund 2 with more than $50 million committed so far from several large family offices and foundations.
Other investors backing the fund include clients of Australian Impact Investments, such as the Siddle Family Foundation and Snow Foundation.
The Paul Ramsay Foundation - set up in 2006 by Ramsay Health Care (ASX: RHC) founder, the late Paul Ramsay - was an early supporter of CIM's previous social and affordable housing and Specialist Disability Accommodation funds.
The new fund follows the successful deployment of CIM’s first social housing fund in 2021, which included a $130 million investment alongside the Victorian Government and Community Housing Association, HousingFirst.
CIM notes that in addition to this landmark Victorian transaction, it has partnered with community housing providers to pursue two other social housing projects, including partnering with the NSW Government and Bridge Housing to fund the acquisition of up to 90 social housing dwellings in Sydney, and Melbourne City Mission to fund up to 15 properties to house vulnerable young people.
"Since we financed social and affordable housing at scale in Victoria in 2021, assets financed by CIM’s funds have provided housing to over 400 tenants. This comes with substantial lessons learned and experience," says CIM chief investment officer Matthew Tominc.
"As governments increasingly look to partner with private capital in this space, we hope to be an early scale mover, using these learnings and our partnerships with the community housing sector to show models of best practice for how private capital can play a role in this emerging sector."
CIM has also announced that John White will join CIM as a special advisor to the business. White is also a special advisor to global real estate investment manager Heitman, where he previously worked for over a decade as a senior managing director, and he is also a non-executive director at HousingFirst and Cafs.
"We have worked closely with John for several years in his role as a director of HousingFirst, one of CIM’s existing housing partners. During this time, we have seen John use his extensive experience to drive meaningful change in the social and affordable housing sector," says Tominc.
"CIM is excited to be working with John as we continue to build the social and affordable housing asset class to institutional scale while delivering much needed housing stock for low-income earners and people experiencing vulnerability in Australia."
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