The Ground Lease Model Project is the first package of the Victorian Public Housing Renewal Program, and will deliver 1,100 new social, affordable and market rental homes. The Victorian Government is using a ground lease model, the first of its kind, to deliver the new dwellings, where the government will lease vacant land to a consortium who will redevelop the sites into integrated communities comprising social, affordable and market rental properties. This package of works will deliver:
- 619 new social housing dwellings
- 126 affordable homes, and
- 365 market rental homes.
Of the total dwellings, 52 will be Specialist Disability Accommodation. The new housing will replace 445 outdated social dwellings.
The Victorian Government will lease land across three sits to a consortium to build, operate and maintain housing on the sites for 40 years. At the end of this term, the land and housing will be returned to the Victorian Government.
The sites are located at New Street in Brighton, Holland Court in Flemington and Bangs Street in Prahran.
Key Dates
| Aug 2020 | RFT Open |
| May 2021 | Contract Award |
| Feb 2022 | Construction Commencement |
| Mar 2024 | Construction Completion |
Funding contributions
| Victorian Government | |
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The Victorian Government will provide $50 million in funding, to be drawn from its $5.3 billion Big Housing Build. The total contract is valued at $515 million, with NHFIC providing approximately $400 million for the project, made up of loans and grants. About $51 million of this will be drawn from the National Housing Infrastructure Facility to provide critical infrastructure such as roads, water and power, for the sites. This will be the largest transaction for the NHFIC to date. |
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Procurement
| Procuring Agency: | Homes Victoria |
| Successful Tenderer: | Building Communities consortium, comprising Community Housing Limited, Tetris Capital, the National Housing Finance and Investment Corporation, Icon Kajima and Citta Property Group. |
PROJECT HISTORY
| May 2021 | The Victorian Government confirmed the Building Communities consortium had been selected to finance, design, construct, manage and maintain the new housing. |
| Mar 2024 | The Victorian Government has announced the completion of construction for Stage One of the Ground Lease Model. The residents will now be moved into the new housing. |
