This article is from the Australian Property Journal archive
PROPERTY fund manager Centuria has entered the growing social and affordable housing market, teaming up with providers for the delivery of 192 dwellings across four sites in the Hunter Valley and Central Coast.
Centuria will contribute around $20 million of equity towards a partnership with social and affordable housing providers and owners Compass Housing and Tetris Capital, as part of the federal government’s National and Affordable Housing Agreement and the New South Wales State Government’s Social and Affordable Housing Fund.
The $1.1 billion state fund is looking to deliver 27,000 homes over the next decade, and recently selected new providers as it moves into its second phase.
Centuria’s investment will see a partial redeployment of considerations received from the recent $137 million sale of its stake in Propertylink.
Centuria director and head of real estate and funds management, Jason Huljich said the newly committed projects have an upfront take-out party secured at a pre-agreed take-out price, and the partnership would be the largest provider of social and affordable housing in the Hunter region.
“We are focused on identifying further opportunities to establish similar models, which can be rolled out across projects in other NSW regions and other states.”
John McBain, Centuria group chief executive officer, said the social and affordable housing sector is well positioned to benefit from state and Commonwealth government commitments towards providing affordable living solutions in NSW and other states.
“While Centuria retains a strong focus on its core property funds management and investment bond businesses, our investment in the social and affordable housing sector is an example of a new business initiative with strong underlying fundamentals, good growth opportunities and the potential to be a strong, ongoing revenue contributor.”
Following the Propertylink stake sale, Centuria has retired $40 million of short-term debt, and settled the acquisition of $20 million of unlisted securities in the 111 St Georges Terrace Fund in Perth.
It has also announced its intention to begin an on-market security buy-back of up to 10% over the next 12 months.
Australian Property Journal
