Ground Lease Model 1
Flemington, Brighton & Prahran - Victoria
In a first-of-its-kind for social housing in Australia, Homes Victoria partnered with the community housing and private sectors to deliver over 1,000 new homes in Flemington, Brighton and Prahran. Each site was mixed use and included over 600 social, 350 market and 100 affordable homes.
The market housing dwellings are managed by Horizon Housing Realt (HHR) and offered to the general public, with renters having to follow guidelines including application, showing affordability and previous rental history to be considered.
The affordable housing dwellings are managed by HHR and targeted at very low to moderate income households as determined in accordance with the Planning and Environment Act 1987 (Vic), with rent capped at 75% of market rent.
HHR is proud to support our 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 after the success of GLM1, the consortium has been nominated as the preferred proponent to redevelop future sites for GLM2.
The Building Communities consortium consists of:
- Community Housing Limited 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 provided an integrated mix of social, market rental, affordable, and specialised disability housing with superior quality in design and build.
This novel project accessed public and alternative financing sources, including the NHFIC as a key partner. This unique, truly integrated partnership with Homes Victoria leveraged 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/
