Centuria enters social and affordable housing market
Centuria has partnered with Compass Housing and Tetris Capital as part of the Commonwealth Government’s National and Affordable Housing Agreement and the NSW State Government’s Social and Affordable Housing Fund to source, develop and deliver 192 dwellings across four separate properties1 throughout the Hunter and Central Coast regions.
Centuria has agreed to contribute circa $20 million of equity towards the partnership.
Jason Huljich, Centuria Director and Head of Real Estate and Funds Management, said;
“This is a new growth opportunity for Centuria’s real estate division. The projects have an upfront take-out party secured at a pre-agreed take-out price and the new partnership will 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.”
Centuria’s announcement of a $20 million contribution to the newly established Social and Affordable Housing partnership is a deployment of cash proceeds from the recent sale of its stake in Propertylink Group.
John McBain, Group CEO, 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.”
1Terms agreed on final two projects, which are subject to final documentation.