NHFIC Affordable Housing Finance Exceeds Half-Billion Mark with Loan to SGCH

The low-cost, long-term finance will help SGCH Group grow its portfolio of more than 6,300 homes across the Sydney metropolitan region. It is estimated that NHFIC’s finance will save SGCH Group $1.5 million in costs over the 10-year loan term.

NHFIC CEO Nathan Dal Bon said the loan will be split into two tranches with the first being used to refinance an existing debt facility and the second tranche provided as working capital.

“NHFIC’s finance helps CHPs provide housing that has a transformational impact on people’s lives,” Mr Dal Bon said.

“SGCH Group demonstrates the community housing sector’s capacity to achieve significant scale. NHFIC is committed to helping CHPs realise their growth potential and the enormous benefits that together we can offer Australians by providing them with a greater supply of safe, secure and affordable housing.

“In just over 12 months we’ve now provided $515 million in finance to CHPs. Not only are our loans supporting the delivery of more than 560 new dwellings directly, they are also enabling CHPs to use savings from our low-cost, long-term finance to invest even more in this much-needed housing.

“Importantly, we are assisting CHPs of all sizes, from announcing our first loan to a Tier-2 CHP last week to this loan to one of Australia’s largest CHPs today. We also have a strong pipeline of additional potential transactions with CHPs right around the country.”

SGCH Group CEO Scott Langford welcomed the opportunity to partner with NHFIC on the $15m finance facility for their parent entity, which contributes to their total $410m in facilities across the group.

“This is a long-term finance agreement which enables us to achieve our vision of great places for everyone and focus on our core purpose by reinvesting into the communities we serve,” Mr Langford said.

“I particularly acknowledge NHFIC’s CEO Nathan Dal Bon and Chairman Brendan Crotty for their achievements in their first year of operation and appreciate the work they’ve done. They have built upon the leadership of Prime Minister Scott Morrison and Assistant Treasurer and Minister for Housing Michael Sukkar in establishing NHFIC and recognising the shared value of the community housing industry. 

“I look forward to building on this relationship, and upon the increasing recognition of social housing as social infrastructure. We have the opportunity to develop this as a larger scale asset class which will benefit the community, the economy and our environment.”

More information:

Ben Haslem  |  0408 887 742  |  Wells Haslem Mayhew

Michelle Moore-Fonseca  |  0423 412 150  |  SGCH