One of Australia's biggest super funds has invested millions in Australia’s first suburban village for dementia patients, showcasing the investment potential of social impact projects.
HESTA, a member of Industry Super Australia, has invested $19 million in Tasmania’s Korongee village, an urban development for those living with dementia.
The super fund has invested in the village through its Social Impact Investment Trust, which seeks to find investment opportunities to deliver market returns whilst also positively impacting communities.
HESTA CEO Debby Blakely said the investment was reflective on the fund’s focus on seeking out worthwhile investment opportunities that also provide a social impact.
“We focus on making a real difference to the financial future of every member and, in the process, having a positive impact on the world into which they will retire,” Ms Blakey said.
“To deliver this we think and act holistically about how we achieve sustainable investment returns, while contributing to a healthier society and planet.”
The social impacts
She said she hoped the act would inspire other super funds to follow suit and invest in opportunities that reap capital returns and address social issues.
“Even relatively small allocations to impact investing from funds in Australia’s $2.7 trillion superannuation industry can make a huge difference,” Ms Blakey said.
The village, the first of its kind in Australia, will be shaped as a typical Australian cul-de-sac, with 12 eight-bedroom houses, a café, supermarket, beauty salon and gardens.
HESTA CEO Debby Blakely said the village represents the need for innovation in dementia care across Australia, as the disease is currently the second biggest cause of death for Australians and the largest cause of disability for those aged 65 and above.
“The demand for dementia care across the nation is outstripping supply,” Ms Blakely said.
“Korongee will help address the big social challenge of dementia, as well as create jobs and opportunities for our members who work in health and community services.”
The design for Korongee was based on leading international and local examples of care facilities that offer independence and stability to dementia patients who can no longer live at home.
Lucy O’Flaherty, CEO of Glenview, the not-for-profit aged care provider that has partnered with HESTA on the project, said:
“Residents at Korongee will live in small houses with others whose values they share. All the homes are being built with dementia design principals throughout, so a sense of everyday normality is much easier to maintain.”
The development is in partnership with the Commonwealth Government and Social Venture Australia, who manage HESTA's $70 million trust, and will be completed in late 2019.
Join the nestegg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
Join The Nest Egg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
most viewed
Scams
Puppy love sees Aussies scammed almost $300k
Economy
‘Reporting error’ sees $60bn slashed from JobKeeper
Shares
CommSec urges investor caution
Expenses
The quicker and cheaper way to finalise a divorce
Listen to
What the heck is with robots and tech - ETFs explained
More podcasts
Find super’s sweet spot
Why we’ll keep delivering for our communities in the face of COVID-19
As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Nest Egg.
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.