GROUND LEASE MODEL PROJECT IN VICTORIA
In a first-of-its-kind for social housing in Australia, Homes Victoria has partnered with the community housing and private sectors to deliver 1,110 new homes in Flemington, Brighton and Prahran.
The Ground Lease Model Project will build 619 brand new social housing dwellings, 126 affordable homes and 365 market rental homes, including 52 Specialist Disability Accommodation dwellings.
The affordable housing dwellings will be managed by Horizon Housing Realty and will be targeted at very low to moderate income households as determined in accordance with the Planning and Environment Act 1987 (Vic), with rent to be capped at 75% of market rent.
Horizon Housing Realty (HHR) is proud to support its parent company Community Housing Limited (CHL) in providing Victorians with a range of new housing options delivered via a ground-breaking partnership approach led by Homes Victoria.
As Australia’s leading not for profit housing provider and a key member of the Building Communities consortium, CHL was delighted to announce that the consortium has been nominated as the preferred proponent to redevelop vacant Homes Victoria land in Brighton, Flemington and Prahran.
The Building Communities consortium consists of:
- CHL as investor, operator, service provider and owner
- Horizon Housing Realty as Build to Rent market housing and affordable housing operator / service provider
- Tetris Capital as bid lead and financial advisor
- National Housing Finance and Investment Corporation (NHFIC) as finance partner
- Citta Property Group as development and property advisor
- Icon Kajima as the builder
Designed by cutting edge Melbourne based architectural practices such as 6 Degrees Architecture, SJB Architecture, Jackson Clements Burrows Architecture and ARM Architecture, this unique project will provide an integrated mix of social, market rental, affordable, and specialised disability housing that is superior quality in design and build.
This first of its kind initiative both in scale and its vision will see the redevelopment of these three metropolitan Melbourne housing sites by the Building Communities consortium, through a special purpose vehicle, Building Communities (Vic) Ltd (BCVL).
BCVL will be provided with a 40-year operating lease, whilst Homes Victoria retains the ownership of the portfolio, providing lasting benefits to the people of Victoria for generations to come.
The program will deliver:
- 619 new social housing dwellings
- 126 new affordable dwellings
- 365 market (rental) dwellings – Out of the 365 market rental homes, 52 will be specialist disability dwellings
This novel project accesses public and alternative financing sources, including the NHFIC as a key partner. This unique, truly integrated partnership with Homes Victoria leverages the combined expertise, innovation and financial strength of the private sector (through partner Tetris Capital) and the not-for-profit sector, with CHL as Australia’s leading community housing provider being an instrumental and aligned partner in its overarching goal to provide all Victorians with affordable and sustainable housing.
As debt is paid down, returns from the market rents will drive the growth of further social housing for hundreds of people in need in Victoria.
Find out more at: Ground Lease Model – Homes Victoria | Victorian Government (www.vic.gov.au)
Read CHL’s media release on this announcement: https://chl.org.au/2021/05/victorians-to-be-housed-as-part-of-a-ground-breaking-initiative/
