Synergis, a leading Australian investor in disability housing, has taken a key step forward in its goal of providing homes for more than 2,000 people with a disability, announcing today that Goldman Sachs Asset Management will become a key investor in the platform and is targeting total equity deployment of at least $137 million.
Goldman Sachs Asset Management will join existing Synergis investors including the Paul Ramsay Foundation, HESTA, Laurie Macri’s Portcullis House and Suncorp Group – making Synergis one of the largest investors in Australia’s disability housing sector.
Synergis will continue to invest in a diversified portfolio of properties that qualify as Specialist Disability Accommodation (SDA). With Goldman Sachs Asset Management and other Synergis investors expected to participate in future capital raises, the fund aims to invest more than $1 billion over the next five years.
Synergis’ funds are managed by Social Infrastructure Investment Partners (SIIP), a joint venture of Federation Asset Management and Social Ventures Australia (SVA) established for the specific purpose of investing in disability housing.
Michael Lynch and Jason Walter, co-heads of SIIP, said the Goldman Sachs Asset Management investment was a transformative step towards delivering Synergis’ vision for every person living with disability in Australia to have access to high quality, safe, stable, and appropriate housing.
“There is a significant undersupply of appropriate housing for people with disability in Australia,” said Mr Lynch. “Since being established two years ago Synergis has built strong relationships in the industry and has committed to over 50 projects that will provide homes for over 150 people. The new investment enables us to scale that up rapidly. We have the ability now to accelerate development of a property portfolio that is focussed on the needs of people with a disability and hopefully generate significant and measurable positive impact on their lives.” he said.
Mr Walter said: “Our vision is to generate appropriate financial returns for investors, while making positive social impact and setting the standard for disability housing in Australia. Scaling Synergis with investment from Goldman Sachs will help us realise this vision. Over time we expect Synergis to deploy upwards of $1 billion into high-quality disability housing.”
Carol Mills, the Chair of SIIP, said: “When SVA and Federation came together to create Synergis, the shared vision was to unlock large-scale capital to help solve this critical social challenge. We are a step closer to that with today’s announcement. This is a very exciting development that has the potential to catalyse more investment in the space to provide even more homes for people with disability.”
The Synergis investment model has centred on partnering with selected SDA providers to ensure that investments are made in appropriate properties that best suit the goals and long-term care requirements of the occupants.
Synergis will continue to focus on building a diversified portfolio of property types across geographies to minimise risk and provide maximum choice to NDIS participants. This includes investing across all classes of SDA property - high physical support, fully accessible, robust, and improved liveability - as well as across different property types, apartments, villas, and houses.
Simon Rothery, CEO of Goldman Sachs in Australia and New Zealand said: “We are very pleased to be able to play a role in supporting the future growth and development of Synergis, as it seeks to meet the demand for high-quality purpose built disability accommodation. Continued investment in this sector will improve the lives of Australians living with a disability by giving them greater choice and control in their housing options.”
Allen Partners and Corrs Chambers Westgarth advised SIIP on the transaction.
Media contact:
Amy Boyce
Sefiani Communications Group
aboyce@sefiani.com.au
+61 449 553 990