Spotlight on: Building Communities (Vic) Limited (BCVL) GLM2
Housing Australia has provided approximately $517 million to support the delivery of 1,370 new homes in Melbourne through a partnership with the Building Communities consortium under Homes Victoria's Ground Lease Model 2 (GLM2) project.
The funding comprises a loan of up to $422 million through the Affordable Housing Bond Aggregator (AHBA) and an additional $95 million from the National Housing Infrastructure Facility (NHIF).
The new homes will be delivered across four housing projects in South Yarra, Prahran, Hampton East and Port Melbourne. Under the GLM1 project, Building Communities has delivered 1,084 modern and energy efficient homes with an additional 285 homes under construction. Homes Victoria has leased the land to Building Communities under an availability model to design, build, finance, manage and maintain the housing for 40 years, whilst retaining ownership of the land.
Danny Dracic, Building Communities (Vic) Director and CHL CEO said, 'Affordable and flexible long-term funding options provided by Housing Australia has been essential to build and sustain affordable housing projects. Housing Australia's ongoing commitment to funding new social and affordable housing is commendable, as it enables community housing providers such as CHL, to provide much needed homes and community services for hundreds of Victorians at an accelerated rate.'
Ryan Slocombe, Director, Building Communities and Principal of Tetris Capital said, 'Homes Victoria continues to work with the Building Communities consortium, including Tetris Capital and Community Housing Limited, to ensure this model remains financially viable and sustainable to meet community needs. Collaborating with public and private partners underscores our commitment to creating vibrant, inclusive neighbourhoods and making a positive impact.'
Simon Newport, CEO, Homes Victoria said, 'Together with our project partner, Building Communities, and funding support from Housing Australia, Homes Victoria is proud to be delivering more and better homes for Victorians through the Ground Lease Model 1 and 2 projects. These projects are replacing outdated buildings that were no longer fit for purpose with new homes that are high quality, accessible and sustainable in the places where people want to live. By working in partnership we're able to give more Victorians a safe, secure place to call home.'
Both GLM1 and GLM2 projects are integral parts of the Victorian Government's $5.3 billion Big Housing Build Initiative. This ambitous program aims to construct over 9,300 new social homes and 2,900 affordable homes across Victoria.