Homes Victoria will partner with not-for-profit consortium Building Communities to build hundreds of homes across four sites in Melbourne.
The innovative partnership, announced this week, with community housing agencies and the private sector is part of the Ground Lease Model 2 Project that will deliver more than 1,370 new homes in inner Melbourne.
Contracts have now been signed to build hundreds of homes across South Yarra, Prahran, Hampton East and Port Melbourne with the Consortium.
502 existing dwellings on the four sites will be replaced with more than 650 new social housing homes, around 180 affordable homes, 500 market rental homes to boost rental supply, and more than 50 Specialist Disability Accommodation homes.
Homes Victoria CEO Simon Newport said the Ground Lease Model continues to pave the way forward for housing excellence and innovation in Victoria.
“The Ground Lease Model is a first of its kind for Victoria and it’s led to us working with like-minded organisations to deliver more homes for more Victorians,” Mr Newport said.
“The second phase of this project, Ground Lease Model 2, will provide safe and secure housing for hundreds of renters once completed by the end of 2026.
“The latest State Government investment represents an uplift in social housing across the sites of 31 per cent – including a 46 per cent uplift at the Port Melbourne site featuring new social housing homes with bay views.”
All new sites will include one-, two-, three-, and four-bedroom modern, well-designed, and energy efficient properties, including a 7-star NatHERS energy rating to ensure homes are cheaper to heat and cool and more comfortable year-round.
The Building Communities consortium includes Icon Construction and Community Housing Vic Limited, and specialist service providers Women’s Property Initiatives and Aboriginal Community Housing Vic Limited. Financing is being provided by Tetris Capital, Abrdn and Invesis as institutional investors, and Housing Australia, SMBC and ANZ as debt financiers.
The announcement follows the success of the Ground Lease Model 1 Project.
What is a Ground Lease Model?
The Ground Lease Model is a first of its kind for Victoria.
Homes Victoria is delivering housing through a partnerships approach, whereby public land is leased from Homes Victoria to a project group who finances, designs and constructs new housing.
The community housing provider manages and maintains the site for 40 years, before handing the land, and all dwellings, back to Homes Victoria.
The sites will deliver social, affordable, specialist disability and market rental homes that are welcoming and secure and which meet modern design and accessibility standards.
Specialist disability accommodation is a type of affordable/market rental housing.
The Ground Lease Model 1 project is on track to deliver more than 1,000 homes by early 2024 across three sites including New Street, Brighton, Victoria Street, Flemington and Bangs Street, Prahran, along with a further 285 homes in Flemington by the end of 2026.
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