 Yeah, good morning. It's great to be here. I wanted to spend just the first 30 seconds on my presentation considering innovation Because that's what we're here to talk about as an innovation in relation to housing and so it's defined as something new or different introduced the act of innovating and When I told a colleague of mine that I was coming to speak this morning. She said oh who who's attending? I said our housing providers service providers representatives of government, maybe some real estate agents, etc And she said well, that's an audience that can kind of create magic I thought what a great challenge that is for us to try and create some magic today and thinking about the wide breadth of skills and experience within the room today You know, that's what we want to try and find and tap into and think and that's really what innovation demands So I'm certainly not a magician It kind of requires everyone to come together But I hope over the next 10 minutes or so it can help facilitate some of that discussion and I suppose Some provocative ideas about what might be possible around thinking about increasing supply in an innovative way So I just want to give you a really quick snapshot of who SVA is for those who don't know Tell you a little bit about the work that we've done In the impact investing space and how it's mobilizing capital to be deployed into a number of different kind of really challenging intractable challenges that we face From a social perspective and then I suppose put a few challenges out to to the audience so SVA we're 12 years young we're not for profit ourselves and We've got about 50 staff scattered around the country So we've done a fair bit of work in ACT as well over the last four or five years helping lead the ACT social enterprise hub and Yes, I've got a national footprint so really I suppose The way SVA does its work is Those three blue circles are kind of really critical. We try to connect capital From everything from government super funds high net worth individuals and deploy it into the social sector We look to attract experienced talent and so that's both internal within SVA but actually work with talent within the sector to build their capacity and All the work that we do really needs to be underpinned by an evidence base So if the evidence base is not there then we work to actually build up that evidence base and ensure that where we're allocating Capital and resource is into programs projects, etc They're going to achieve the outcomes that we're seeking to achieve impact investing is is one part of The work that social ventures does and it's the part that I'm a director in And this is kind of a nice clean slide to give you a flavor of what the impact investing market looks like It's it's relatively in its infancy within Australia There's been a bit more development over in the UK in the US But it's really been born out of both the demand and the supply side that is on the demand side We've got four purpose organizations that are looking for a more diverse funding base Historically not for profits would largely seek their funding from government alone. We've also got the challenge around governments looking for diversified Areas source of capital to actually be deployed and to achieve some of these social Or address them the social challenges they're facing on what is you know across the country fiscal challenges and then on the supply side And this might be a surprise to some there's actually a large number of investors that are seeking to put their capital into action in the social space needs to fit their particular parameters and criteria in which they want to invest But there's a large amount of capital that wants to be deployed into the sector And so it's very much where the impact investing market sits And that's really the role of SVA and others like SVA who are seeking to I suppose bring together those two ends of the spectrum As I mentioned you as you look across that kind of spectrum, you know historically There's the philanthropic funding grant funding in which providers will receive capital and yes, they'll need to deliver certain outcomes, but the money's out the door and and there's sort of no Expectation they'll be returned that money and on the other side of the spectrum is the kind of commercial for-profit world in which Investment is made and there's an expectation of return depending on whatever that vehicle might be and again sitting in the middle Is the impact investing space and so from an SVA perspective we see that as playing a more flexible role We're trying to bridge the gap between that of sort of grant and philanthropic funding on one end of the spectrum and the other end being kind of a pure for-profit maximizing profit end of the spectrum and So it is a little bit disruptive as that quote suggests It's moving away from sort of two very traditional kind of structures And trying to create I suppose a bit of a middle ground just thinking about specifically what that looks like from a sort of a Financial product perspective again There is very much and as many of you'll be familiar with the sort of donation and government grant world or government contracting work On the other end of the spectrum is you know You kind of your bad end of town your private equity players venture capital are out there to kind of make as much money as possible Quite speculative etc But as you can appreciate there's a lot of activity and potential in between and so the social debt idea is that And SVA has a small fund in which they're deploying capital in this space Is actually to be more flexible on their terms than what a traditional financier like a mainstream bank might be And that can be anything from the terms of the loan that the underlying security that's required etc much more flexible and really a Desire to get alongside our partners organizations that we invest into to actually support them and ensure that the the capital We deploy is used for the purposes. It's been agreed but also to ensure that the social outcomes are being achieved Then there's the kind of commercial debt which is sort of you know for any of us that have a mortgage Understand what that world looks like And then this new kind of term social impact bonds that some of you might be familiar with or some may not be It's a new kind of instrument that basically in terms of its risk profile sits in between kind of commercial debt and equity And really the way it works is at a very simple level It's a tripartite agreement between government between a service provider and between private investors And essentially what it seeks to do is it identifies a challenging social problem that That that has a significant fiscal or financial burden on governments That can be easily Quantified measured and if a program is delivered that can make a material impact on those savings Then government the savings from from the delivery of that service is that it goes back to repay investors So basically investors stump up the capital upfront to go into the service provider The service provider delivers that that service and over a period of time through kind of rigorous measurement as the outcomes are being achieved government saves money and Portion of those savings are then channeled back into the investor. So the investor receives a return the government gets both the social outcome and also savings from budgetary perspective and The service providers happy because they've had received capital have been able to deliver their service In terms of thinking about how much capital is available It's kind of how long is a piece of string But what we do know is that there's close to two billion dollars of capital and invested through our super funds largely And as our CEO likes to talk about if even 1% of those funds was deployed in the impact investing space We'd see 20 billion dollars injected into the space now. I certainly appreciate that. That's a huge figure And the requirements on tapping into some of that capital is is difficult and onerous But even on conversations that out the impact investing team in SVA has had over the last number of months with both Super funds high net worth individuals. We see hundreds of millions of dollars In which organizations fund managers are keen to deploy into the social space within the right kind of parameter and and and sort of structure that's being created so a huge amount of opportunity the markets Large there's a lot of capital. It's around being collaboratively collaborative and innovative Across all of us in the room to work through. How do we actually set up products and vehicles that are appropriate to tap that money? So who are the investors as I've mentioned SVA has sort of engagement across all of these high net worth individuals So that's everything from self-managed super funds to family trusts and private andcillary funds So investors who are socially minded and who have lots of capital at their disposal Large philanthropic foundations and trusts corporate foundations largest super funds and institutions At varying degrees, but lots of these players are very keen to step into the impact investing space Lots of them actually don't know how to And I suppose that's where SVA and others who play in that intermediary space are trying to I suppose hold their hands and Find product and opportunities in which to invest that capital. I Just wanted to share this this was a survey that we did after one of our the social impact bonds that closed up in New South Wales Is it is regarding? Restoring young children who are out of home care back to the original families I just thought it was an interesting insight into the mindset of the investor base So there's about 60 investors who invested in that bond We raised about just over seven million dollars and it was heavily over subscribed which in layman's term Says that there was more demand more people wanting to put their capital into the bond than what we could take On which is a positive sign But the two highest kind of measures for what drove the investment decision by our investor base Was both the social impact so the potential to impact on the lives of vulnerable children and also the financial return so just really I suppose emphasises the importance of of Measuring those two kind of considerations that investors absolutely concerned about the social impact But the equally that the financial return is really critical So we need to ensure we're hitting the particular benchmarks required. So what of what do we know about collaboration and what have we done in this space? That we've got a fund that that's a combination of both Commonwealth grant funding and private investor capital So we've raised five million dollars of private investor money and we're investing that into enterprises And community housing providers around the country Where we see a tangible social impact along with a financial return on that investment We were also very heavily involved along with Ben Sock mission and brotherhood of St. Lawrence to bring together a consortium To do what to date has been the largest impact investing deal in Australia where we raised 165 million dollars to actually buy what used to be the ABC learning centres and he's now a good start and And of that 165 million about 40 million of that was what we call social notes Which was really social impact investors that were wanting to put their capital into this investment to see kind of material outcomes for young children who are in childcare and And so I suppose that gives us optimism and hope about where the next kind of large Transaction is going to come from in the impact investing space and As I mentioned social benefit bonds, which the first one was a collaboration between SVA and United Care Burnside Ben Sock ran the other social bond and across a number of the states around Australia and Territories there's a lot of interest around social impact bonds Recognising they're only for a really a specific part of the market, but there is huge opportunity there and investors are certainly kind of attracted to that model I suppose the question is well, what next what else is there's a lot of activity in the sort of direct fund investment space? Social impact bonds, but what else can we put our heads together and find vehicles structures in which investors are ready and comfortable to To to deploy their capital So what are the and look there's nothing new here But the kind of obvious ingredients to these investment opportunities particularly in the thinking about sort of housing space for those with disabilities Land and stock is vital And because of the affordable challenges that Ilan spoke about how do we actually find land and or stock? On potentially concessional rates and what is the role for government to play there? For community housing providers to play even for a real estate agents around sourcing that land and stock that's appropriate We absolutely need private capital government are clear across the country That they're not going to stump up the full amount of capital required So that's where we need to be innovative around our structures that we create to tap into a lot of that private capital It's keen to be deployed We we need innovative partners we need and that's not just an SVA That's SVA working with a large number of different players to actually bring this to life And that's kind of almost each of you in the room Have a really important role to play in that and of course government absolutely There's challenges around I suppose market failure in this space and because of some of the affordability challenges That of course impacts on the sort of economics or viability of a particular project from a purely market perspective So what's the government's role to kind of plug that gap and provide? I suppose the support and the framework needed to again ensure that private investments unlocked just really briefly in closing I just wanted to talk through two Examples that SVA has been involved in recently in the housing space There's a youth for a model and these aren't The youth for model is not specific to to people with disabilities, but what it does I suppose how it is The innovation within this space and what's possible We're looking at a development in New South Wales That's gonna it's for young people at risk of homelessness It's gonna be a 60 studio apartment build But it's gonna be a mix of young people at risk of homelessness with mainstream student accommodation And so what that actually does by mixing the tenure Other tenancy mix, sorry is that it actually starts to improve the economics and encourages more private capital into the into the into the Development and so what we're looking at is a seven million dollar upfront capital that's required in close to 70% of that can Be sourced from impact investing dollars So all those investors I talked about before we can use their capital to come in There's a just over a two million dollar gap there that needs to be plugged either through the support of government philanthropists corporate, etc And and within this particular deal the land is provided by the service provider Which again is largely a free kick and the nature of some of these challenges. It needs to be a cobbled together package We can't just go to market buy market rents Do a full development because the economics don't stack up and therefore you can't tap into that impact investing dollars In Queensland, there's an elderly parent care as an issue that some of you might be familiar with With an objective to provide sustainable living arrangements for adults with disabilities Who are cared for by their elderly parents? And again basically the deal was that it was a commercial development was being done And the developer was comfortable with giving up one floor of I think it was a six-floor development and those eight dwellings were going to be disability-friendly and through a Government grant of one point six million dollars. It was going to be leveraged double that to ensure that these Accommodation could be affordable and suitable for people with disabilities. So I suppose the question is and I've got a little bit of a time So apologies It's really well what next how do we actually kind of get our heads together and collaborate on some of these really? Big challenges and as alarm mentioned They are challenging when affordability issues are prevalent when there's issues around discrimination and stigma When there's really important kind of design considerations, which often he actually increases the cost of capital builds How do we kind of solve for this and it really is a case of everyone coming together and it's thinking about community housing providers who are willing to leverage and potentially have land or stock that they can contribute and Progressive boards and management so they're able to see through I suppose some of the immediate challenges and think at a bigger picture Service providers around input on design and and location considerations Absolutely in requirement for government to be a willing participant, and I think forms like this or a good reflection of that But government to be thinking about what role do we play to plug? I suppose that gap between sub market and market returns Real estate agents thinking through access to land and helping around some of those Kind of the stigma challenges and even developers think about low-cost construction models So there's no easy solutions, but I suppose that's the kind of beauty of collaborating together And that's where the need for kind of some magic is across the room. I recently saw Lion King the musical I've been sitting Disney production and You'll know from this scene Simba gets told Everything the light touches is ours and not to get too philosophical But we're kind of on the cusp particularly ACT with any ice rolling out and this incredible opportunity and we look out up upon the horizon and there's a whole amount of opportunity and With all the heads in the room and the skills and experience I think it's a great time to begin that journey get our heads together and start to work through how we can be Innovative and collaborate to get to get really terrific outcomes. Thank you