Christchurch Social Housing Transfer
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The Christchurch Social Housing Transfer involves a single transaction transfer of up to 2,500 social houses (including tenancies) from Housing New Zealand to community housing providers (CHPs). The properties to be transferred will mainly be in Brynwyr, Riccarton and Shirley.
The project is part of the Social Housing Transfer Programme, which aims to improve the quality and management of social housing services. While the ownership is transferred to the CHPs the properties are still maintained as social housing with the rights and rent of tenants remaining unchanged.
Under the agreement, CHPs will:
- undertake responsible for tenancy management services;
- provide tenants with access to welfare and support services;
- maintain properties and remedy defects, as well as provide timely property services; and
- reconfigure and redevelop the social housing stock, as well as identify opportunities to provide new supply of social housing.
EOIs for the project closed in April 2017 and in June 2017, the New Zealand Government announced a shortlist of three consortia had been shortlisted for the project. The shortlist includes:
- Community Futures Christchurch, a consortium comprising the community housing provider Trust House Limited, Whitehelm Capital Pty Ltd, and Broadspectrum (New Zealand) Limited;
- Ōtautahi Community Housing Consortium, comprising the community housing provider Ōtautahi Community Housing Trust and Morrison & Co PPP GP 2 Limited; and
- A consortium comprising the community housing provider Compass Housing Services Co (New Zealand) Limited, AMP Capital Investors Limited, and Brookfield Financial Australia Securities Limited.
Shortlisted consortia have until 25 September 2017 to submit formal fully costed proposals. The Government is expected to announce the preferred bidder in November 2017, with the transfers to be completed by middle of 2018.
The total book value of the assets is NZ $704 million (AU $653 million), with these assets attracting NZ $45 million (AU $42 million) in revenue from tenants and the Government in FY2015/16. It is expected that the successful bidder will enter into a 25-year contract with the Government to own and manage these properties.