Corrs is advising the Port Phillip Housing Association (PPHA) on all aspects of PPHA’s Ashwood Chadstone Gateway Project, the largest-ever development by the not-for-profit sector in Victoria.
The development will include approximately 207 social housing units as well as 75 private housing units. As part of the arrangements with the Department of Human Services, PPHA has also agreed to provide an additional 261 social housing units outside the Ashwood Chadstone Development.
Corrs provided advice on the review and the negotiation of the funding and development agreement and contracts for sale of land with the Department of Human Services; the review and negotiation of contracts for sale of land with private landowners; drafting and negotiating a number of development agreements, finance documentation and contracts for sale of land with private developers; the review and negotiation of the design and construction contracts and tripartite agreements between PPHA and builders; the drafting of contracts for sale with prospective purchasers of private housing units; and advice in relation to debt funding, planning law matters and the National Rent Affordability Scheme.
Partner Nathaniel Popelianski and Senior Associate Paul Carrick are leading the Corrs team together with Gillian Hohnen and Anna White.
Nathaniel stated: “The unique feature of housing development in the Not for Profit Sector is that a Not for Profit does not distribute profits to shareholders, it reinvests profits into more social housing development. This means that an allocation of Government funding for social housing projects results in the delivery of a larger number of social housing units than might otherwise be the case in the private sector.
These types of developments play an important role in increasing the stock of affordable housing for Australians because Housing Associations are at the coal face of social housing issues. They acutely understand the need for greater investment in the sector and are fast developing expertise in the development and delivery of social housing projects. The Ashwood Chadstone Gateway Project is a prime example of the Not for Profit Sector applying hard edge business principles to deliver a major real estate development.”
Construction on a number of sites has commenced, with both the Victorian Government and PPHA contributing approximately $70 million each to the project.
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