The Ground Lease Model Project Stage Two will deliver 1,370 new social, affordable, specialist disability and market rental homes. The project is being delivered under a Public Private Partnership (PPP) using a Ground Lease Model, which sees the Victorian Government lease the land to the Building Communities 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.
The Judging Panel commends the consortium’s financial advisors for the use of the ground lease model over a 40-year concession term. This approach ensures long-term stability to the State, the Consortium and residents. The project’s transparent financing structure, involving private sector finance and government investment, showcases a sophisticated model for resilient infrastructure financing. The Panel also recognised the financial importance of diversifying the range of homes built, varying from specialist disability to market rental homes.