G+T advises Housing Australia on funding for the Ground Lease Model Project – Stage 2 PPP, supporting affordable housing in Victoria
The Ground Lease Model Project – Stage 2 PPP is the second package of the Victorian Public Housing Renewal Program, aiming to help address the undersupply of social and affordable housing in Victoria. Homes Victoria will lease public land to a consortium to construct 1370 new affordable rental homes in Melbourne
The homes for Stage 2 will be located in Port Melbourne, Hampton East, South Yarra and Prahran and are expected to be completed by 2026.
The project will be delivered by the successful sponsor, Tetris Capital, through a newly established CHP, Building Even Better Communities Limited. Community Housing Limited (Vic) , an established community housing provider will manage and maintain the dwellings for 40 years with specialised support from both Aboriginal Community Housing (Vic) Limited and Women’s Property Initiatives, before the land and all dwellings are handed back to Homes Victoria.
Housing Australia signed a lending deal of approximately $517 million by way of senior debt to support the project alongside commercial banks who will provide the balance of the senior debt funding.
Housing Australia’s senior loan will be primarily funded by a new AHBA sustainability fixed rate bond issuance of c. $422 million, taking total bond issuance by Housing Australia to more than $2.6 billion. Housing Australia will also provide a $95m NHIF Loan.
The G+T team was led by Infrastructure Partner Peter Doyle who was assisted by special counsel James Frixou who led the debt workstream. James was assisted by lawyers Christian Smolders and Jaron Lam.
Peter Doyle commented: “We are delighted to have supported Housing Australia provide funding for this significant project and proud to be supporting affordable housing in Victoria.”