As at 30 June 2017, we managed 18,841 properties worth $11 billion in all capital cities, major regional centres and some remote locations of Australia where the ADF has a presence (refer Figure 2.7).4
The majority of properties are integrated throughout the community, close to ADF bases and establishments, and close to a range of amenities and services such as transport, shopping facilities and schools.
Refer to Part 3 of this report for details of our housing portfolio by region.
4Total portfolio includes properties tenanted by ADF members, privately leased properties, vacant properties, properties offline for maintenance, properties pending sale or disposal, properties pending transfer to our portfolio and properties that are not currently servicing an active client (including 724 properties that are either not on the Defence rent bill while they undergo major works or are being transferred out of the portfolio).
Property type, amenity and location
Our MWD portfolio
MWD service residences must comply with minimum Defence specifications in terms of location, size, amenity and market rent.
In general, MWD service residences should not be more than the greater of 30 kilometres each way by road (or 150 minutes for a round trip) from the base or establishment where the ADF member works.
In accordance with Defence’s minimum standards, MWD service residences generally comprise three bedrooms, separate lounge and dining areas, kitchen, laundry, bathroom, ensuite, single garage (or carport in NT) and a 25–35 square metre backyard. Where newly constructed, MWD service residences must achieve a minimum six star energy efficiency rating (EER).5
5EER must be certified by an independent accredited assessor, using AccuRate (NatHERS replacement), other equivalent methods (e.g. state systems such as BERS Pro and BASIX) or, where permitted, Building Code of Australia Deemed-to-Satisfy provisions.
As indicated in Figures 2.8 to 2.10, the majority of our MWD portfolio features modern, freestanding houses that are six to 10 years old and have four bedrooms.
Our MWD portfolio also includes a portion of properties categorised as rent band choice housing (RBCH). These properties are generally inner city apartments and townhouses that do not meet the minimum standard. ADF members typically choose to live in a RBCH property because the location suits their lifestyle.
Our MCA portfolio
Our MCA properties offer MWOD and MWD(U) an attractive alternative to renting privately, including a simple move-in move-out process with no bond or rent required in advance. Eligible ADF members may also share properties with other eligible ADF members.
There are no minimum standards for MCA properties. As indicated in Figures 2.11 to 2.13, the majority of our MCA properties are two bedroom apartments that are up to two years old.
Refer to Part 3 of this report for more information about our MWD and MCA portfolio provisioning performance in 2016–17.
Portfolio ownership by type
Ownership of our portfolio can be segmented into four categories:
The majority of our MWD and MCA portfolio is owned by private investors and leased to us.
We retain a portion of our portfolio for strategic reasons. This includes well-located properties that would be difficult to replace if sold and properties that we choose to hold for financial reasons.
A portion of our MWD portfolio is owned by Defence. These properties are generally located on ADF bases or establishments.
A portion of our portfolio is classified as annuity properties. These are properties that we construct on-base or acquire and/or construct off-base in selected locations and pass the economic risk of holding capital in these markets to Defence.
Figures 2.14 and 2.15 provides a breakdown of our MWD and MCA portfolios by ownership type.