Invesis makes its first social and affordable housing investment in Australia
2 November 2023 - Invesis is investing A$60 million (€36 million) in the delivery of 1,370 new homes (including 650 social homes and 55 Specialist Disability Accommodation homes) across four sites in Melbourne as part of Homes Victoria’s innovative Ground Lease Model 2 project.
Invesis is proud to be a partner of the Building Communities consortium as equity sponsor alongside abrdn and working with Tetris Capital, Icon, Community Housing (Vic) Ltd., Women’s Property Initiatives and Aboriginal Community Housing (Vic) Ltd.
Working together with the consortium partners and Homes Victoria, the project will deliver significant social impact by increasing the social housing stock at each of the four sites – with the rest a mix of affordable and market rental homes, including Specialist Disability Accommodation homes. There is tailored housing included for vulnerable women and Indigenous Victorians and all homes will be energy efficient and environmentally sustainable.
Ground Lease Model 2 marks a key milestone in Invesis’ strategy to play a leading role in the Australian governments’ flagship policy of transforming the supply of affordable housing to communities across the country. With this second investment in Australia, alongside the Cross River Rail project in Brisbane, Invesis strengthens its position as an investor developer and long-term partner for our clients in the Australian market.
Building communities
The Ground Lease Model 2 project includes social housing, affordable housing, market rental homes and Special Disability Accommodation dwellings, spread across four sites in Melbourne owned by Homes Victoria:
Simmons Street, South Yarra
Essex Street, Prahran
Bluff Road, Hampton East
Barak Beacon site, Port Melbourne
The dwellings are truly integrated and mixed across all four sites making them inclusive and sustainable. They are activated with social enterprises, community spaces and overall connectivity to the surrounding environment. The Building Communities consortium is responsible for the design, construction and financing of the social, affordable, market rent and Special Disability Accommodation dwellings across the four project sites. Works will commence following community consultations and are expected to be complete in late 2026, delivering a total of 1,370 new homes. The consortium will then be responsible for the management and maintenance of the sites for the next 40 years.
Chris Williams, Chief Executive of Invesis, said: ‘Invesis is delighted to play our part in delivering much-needed affordable homes for communities across Melbourne. As a business we are committed to using our investment to deliver transformational social benefits to the communities we serve. In its innovative Ground Lease Model program, Homes Victoria has created a world-leading delivery program which is leveraging global investment capital to transform the life experience of hundreds of families in the state. Invesis is proud to be part of the Building Communities team working with Homes Victoria to make this a reality.’