Centuria Enters Affordable Housing Arena
Centuria announced this week that they will enter into Social and Affordable Housing Market in a partnership with Compass Housing and Tetris Capital to deliver 192 dwellings throughout the Hunter and Central Coast regions of NSW.
Centuria has agreed to contribute circa $20 million of equity towards the partnership from the proceeds it received from the Propertylink sale. A pre-agreed take-out price for the end product has been determined, reducing the risk to Centuria's capital.
The projects will be developed with the assistance from the Commonwealth Government’s National and Affordable Housing Agreement and the NSW State Government’s Social and Affordable Housing Fund (SAHF).
The SAHF is a $1.1 billion New South Wales Government initiative funding for the provision of social housing - and related services - from private or non-profit consortia through an availability-type payment stream. The Government’s investment arm, TCorp, is investing the money to provide a stable income stream for up to 25 years to boost social and affordable housing, with homes to be built over four years.
Compass Housing were 1 of 5 housing providers selected by the NSW Gov in early 2017 to deliver 2,000 dwellings and tailored support services as part of Phase 1 of the project. Phase 2 of the project was announced in Feb 2019 with a further 4 providers to deliver a further 1,300 dwellings.
Centuria will seek to identify further opportunities to establish similar models, which can be rolled out across projects in other NSW regions and other states.