Ground Lease Model 2 Housing

Melbourne, Australia
Transforming Communities with Innovative Housing Solutions
November 2023 Financial Close
2023 - 2026 Construction Period
40 years Concession Period
2066 Handback

The background

In a historic move, the Victorian Government committed to replacing outdated social dwellings and expanding the social, affordable, and specialist disability housing stock in Melbourne, Australia. This ground-breaking initiative, known as Ground Lease Model phase 2 (“GLM2”), represents the largest single investment in social and affordable housing by any Australian government.

The Victorian Government pledged to develop 1,370 energy-efficient and environmentally sustainable homes across four sites in Prahran, Port Melbourne, South Yarra, and Hampton East. Delivering the project under an availability model Public Private Partnership to design, build, finance, manage and maintain the housing for 40 years, with the land remaining in Victorian government ownership.

The project comprises of 650 social housing homes, 180 affordable homes, and 55 Specialist Disability Accommodation units, with the balance of homes available for market rent. The sites will feature well-designed landscaping, community spaces, and connectivity to enhance overall community well-being.


Homes Victoria

Capital Value

€530m (AUD $875m)


Building Communities (Invesis, Tetris Capital, abrdn, Icon, Community Housing (Vic) Ltd., Women’s Property Initiatives and Aboriginal Community Housing (Vic) Ltd.


Invesis, abrdn, Tetris Capital and Community Housing (Vic) Ltd

Engineering, Procurement and Construction (EPC)


Operations and Maintenance (O&M)

Tetris Capital and Community Housing (Vic) Ltd

Business value.

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.


Key features.

  • 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.

Click here to watch video 'Homes Victoria and Building Communities to deliver another 1350 new homes'