HESTA has invested $19 million to finance a cutting edge Australia-first suburban village designed to recreate real life experiences for those living with dementia.
The investment was made through HESTA’s $30 million Social Impact Investment Trust, which is managed by Social Ventures Australia (SVA) and aims to invest in opportunities that deliver both an appropriate financial return and a measurable social impact.
The development of the Korongee village is a partnership between HESTA, Glenview – a not-for-profit aged care provider, SVA and the Commonwealth Government. The greenfield site in the Tasmanian suburb of Glenorchy will have 15 demographically tailored homes set within a small town context complete with streets, a supermarket, cinema, café, beauty salon and gardens.
“The demand for dementia care across Australia is outstripping the available supply of services and facilities,” said HESTA CEO Debby Blakey.
“This investment will help provide a world-class facility for the local community and benefits our members by earning a return, while also piloting a model for investing in Aged Care that could attract other large investors to this space.”
SVA CEO, Rob Koczkar, said that innovative partnerships like Korongee show what can be achieved when the skills and experience of different sectors are brought together.
“We are delighted to be working with Glenview on this project; the first of its kind in Australia,” Koczkar said.
“It is a great example of how SVA’s partnership with HESTA to establish Australia’s largest dedicated social impact investing funds provides an opportunity to create positive social impact in communities like Glenorchy.
“A transaction of this scale is exciting for the impact investment market in Australia. It shows that there are significant opportunities to deploy institutional capital towards social sector projects that create both a social and financial return.” Construction is planned to commence in in early 2018, with the site to be complete by mid to late 2019.”