Ground Lease Model 2 Housing

Client ‘Homes Victoria’ awarded the project to the Building Communities consortium in 2023, with Invesis as equity sponsor.

Significant funding from Housing Australia, investors (Invesis, Abrdn, Tetris and Community Housing (Vic) Ltd) and commercial lenders (ANZ and SMBC), makes GLM2 the largest deal in the Federal housing agency’s history.

GLM2 aims to have a transformative impact on the local communities. Ambitions include a 30% increase in social housing units, tenure-blind designs for socially inclusive communities, employment opportunities for local groups, and reinvesting returns in future social housing projects.

One of the key benefits of the consortium was the inclusion of two smaller specialised Community Housing Providers in the team to ensure a more diverse and inclusive approach to provide housing to more vulnerable, less-advantage communities: Women’s Property Initiatives will manage and maintain 200 homes, providing support for over 290 vulnerable women and children. Aboriginal Community Housing Limited oversees 10% of social homes, focusing on the needs and cultural beliefs of Aboriginal Victorians.

• Transformational Social Impact: GLM2 aims to transform the lives of families and individuals, particularly those from vulnerable backgrounds, creating socially inclusive communities.
• Flagship Example and Pathfinder: GLM2 serves as a flagship for accelerating the development of social and affordable homes nationwide, setting a path for future projects. It aligns with the top priorities of both State and Federal governments.
• Innovative Funding Approach: The Building Communities consortium developed a funding structure ensuring the social purpose remains paramount, enabled investors and commercial lenders to participate alongside the not-for-profit Community Housing Providers and the public funding through Housing Australia, and value for money is created to meet the client’s requirements and assure delivery
• Energy-Efficient and Sustainable Homes: GLM2 delivers modern, well-designed, and energy-efficient homes with a 7-star energy rating. Rooftop solar, EV charging, and climate-resilient landscaping contribute to sustainable development.

The Federal government’s Minister for Housing, Julie Collins announced the deal as “a historic day in Australia”.  The co-financing approach from infrastructure investors and Housing Australia serves as a model for the major drive to deliver 40,000 new social and affordable homes across the country.