Homes Victoria Ground Lease Model 2

Hampton East, Port Melbourne, Prahran and South Yarra, Victoria

Building Communities has been awarded the Victorian Government’s Ground Lease Model 2 project, as is nears construction completion on Ground Lease Model 1.  

The consortium, comprising Tetris Capital, Community Housing (Victoria) Limited, Women’s Property Initiatives and Aboriginal Community Housing (Victoria) Limited and Icon, with funding partners Housing Australia, ANZ, SMBC, abrdn and Invesis, has been selected to deliver the government’s second major social housing project.

To replace 500 outdated homes with 1,370 modern, sustainable and energy efficient homes, the Victorian Government will lease land in Hampton East, Port Melbourne Prahran and South Yarra to the consortium for 40 years.

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The consortium will finance, design, construct, manage and maintain more than 650 brand new social housing dwellings, 180 affordable homes and 470 market rental homes, including 55 Specialist Disability Accommodation dwellings.

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As well as being an investor, Community Housing Limited will be the lead operator and service provider, alongside new partners Women’s Property Initiatives and Aboriginal Community Housing Limited. Housing Australia, ANZ and SMBC have provided debt finance and global investors abrdn and Invesis have also joined the team. Icon will build the new housing with completion scheduled for 2026.

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Leading and sponsoring the bid, Tetris Capital acted as the financial advisor on the project and will continue as an equity holder and as the long-term asset manager for the duration of the ground lease.

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At the end of the 40-year lease, the land and all the 1,370 dwellings will come under the management of Homes Victoria.