Tetris Capital and builder Icon Kajima are in the box seat to take on Victoria’s second so-called ground lease public housing renewal project, having secured preferred tenderer status to develop about 1400 new homes across four Melbourne existing housing sites.
The public-private partnership is the second of its type the state government has pursued as part of its $5.3 billion Big Build program.for the construction and management of 1110 new homes over three sites on a 40-year contract under which the state retains ownership of the underlying land. Its success made it an attractive option for the state to pursue again, sources said.
Although the ground lease model marks a break from the past by retaining state government ownership of the land, a range of procurement models would be needed to roll out the stiff target the state has set for“It’s going to be a mix of everything,” the source said. “There is so much to be built that if they just went with PPPs, they’d never build it.”