Macquarie-backed Local Residential will include 41 affordable, social and specialist disability accommodation units in its first project of 477 build-to-rent homes, starting a pipeline of diverse housing it says will account for a minimum 15 per cent of its $5 billion portfolio over the next decade.

When complete next year, Local’s $380 million Melbourne development in Kensington will offset the rental shortfall of the 11 social homes with subsidies it gets for eight specialist disability accommodation units in the project. It will spread costs of the 22 below-market-rent affordable homes among its commercial rentals, co-founder Dan McLennan said.