The Ground Lease Model Project - Stage Two is the second package of the Victorian Public Housing Renewal Program, and will deliver 1,370 new social, affordable, specialist disability and market rental homes. The Victorian Government is using a ground lease model, following the successful procurement of Stage One.
Stage Two housing redevelopments will occur on Homes Victoria owned sites, including:
- Horace Petty, South Yarra
- Essex St, Prahran
- Barak/Beacon Roads, Port Melbourne, and
- Bluff Road, Hampton East.
The successful proponent will be responsible for the:
- design and construction of a mix of social, affordable, specialist disability and market rental housing
- operation and maintenance of homes to an agreed standard for 40 years
- handover of all homes to Homes Victoria at the end of the term, and
- provision of private sector finance for the project.
The project will include replacing around 500 dwellings on the four sites with 650 social homes, 180 affordable homes, 470 market rental homes and 55 Specialist Disability Accommodation Homes.
Key Dates
| May 2022 | Project Announcement |
| Jun 2022 | EOIs Open |
| Jun 2022 | EOIs Close |
| Nov 2023 | Contract Award |
| 2024 | Construction Commencement |
| 2026 | Expected Construction Completion |
Funding contributions
| Victorian Government |
Financing
|
The project has received $517 million in conditional investment from the Federal Government through Housing Australia – formerly known as the National Housing Finance and Investment Corporation (NHFIC). This investment comprises $422 million in finance through the Affordable Housing Bond Aggregator and $95 million through the National Housing Infrastructure Facility (NHIF) – it has not been disclosed whether the NHIF investment is funding or finance. |
Procurement
| Procuring Agency: | Homes Victoria |
| Successful Tenderer: | The Building Communities Consortium, comprising Tetris Capital, Icon Constructions, Community Housing (Vic) Limited, abrdn and Invesis. |
| Procurement note: | The project is being delivered under an availability-based Public Private Partnership using a Ground Lease Model, which sees the Victorian Government lease the land to the Consortium. The Consortium will design, construct, finance, operate and maintain the dwellings over a 40-year concession term, after which the land and homes will revert to Homes Victoria. |
PROJECT HISTORY
| May 2022 | The 2022-23 Victorian Budget allocated $260 million to the Ground Lease Model Project - Stage Two, as part of the Big Housing Build. |
| Jun 2022 | The Victorian Government issued Expressions of Interest (EOI) for the project's delivery, closing on 30 June 2022. |
| Nov 2023 | The Victorian Government has selected the Building Communities Consortium, comprising Tetris Capital, Icon Constructions, Community Housing (Vic) Limited, abrdn and Invesis, to deliver the project. The project's funding and financing profile was also announced. |
| May 2024 | The 2024-25 Victorian Budget provided an updated total cost of the project of $687 million. The Budget also outlined that the project would be completed by late 2026. |
