Community Housing Ltd and Tetris Capital Pty Ltd
Cairns Seniors Community Housing Project
NAIF's loan to Community Housing Ltd and Tetris Capital Pty Ltd for the Cairns Seniors Community Housing Project which will provide 490 social, affordable and specialist disability accommodation (SDA) housing in Cairns, Queensland.
Investment Decision
August 2024
Sector
Social Infrastructure
Location
Cairns
LOAN DETAILS
NAIF loan amount up to
$140m
Total Project Value
$426.1m
Length of Loan up to
23 years
PUBLIC BENEFIT
$140.8m
Forecast Jobs
290 (during construction)
Forecast Jobs
32 (during operation)
Project Status
Financial Close
In partnership with Housing Australia (HA) and the Queensland Government (through its Housing Investment Fund; HIF), the Cairns Seniors Community Housing Project will provide social, affordable and specialist disability accommodation (SDA) to address the housing shortage in Cairns. The project will deliver 490 dwellings, comprised of 245 social, 223 affordable and 22 SDA apartments, providing housing to around 690 people.
Proponent Background
The project is being developed by an experienced consortium who have delivered several community housing projects in Victoria under a similar funding model. The project was initiated through a HIF process that invites proponents to submit proposals for community housing projects.
Tetris is an Australian infrastructure developer, investor and manager, with over $3 billion of assets under management. It focuses on large-scale infrastructure and structured property projects. The CHL group of companies is the largest community housing provider (CHP) in Australia with over 11,000 properties under management. CHL manages over 1,300 community housing dwellings across Queensland through its subsidiary, Community Housing Queensland Limited (CHQL), which is the same entity that will operate this project.
Project Overview
The Cairns Seniors Community Housing Project aims to address the pressing housing shortage in northern Queensland by establishing a purpose-built seniors' community in Cairns.
The initiative responds to a critical public need, underscored by several key factors. Firstly, there is a growing population of elderly individuals facing homelessness or precarious housing situations in regional Queensland, with an annual increase of approximately 1.2% compared to 0.6% for the general population.
Secondly, Cairns has witnessed a significant rise in rental prices over the past five years, outstripping neighbouring cities and the state average. This surge in rental costs affects seniors, including an increasing number who do not own their own homes.
Thirdly, there has been a limited supply of new affordable housing in the region in recent years, leading to a shortage in long-term affordable housing and a strong demand for this type of accommodation.
The HIF's capital grants and operational subsidies play a crucial role in incentivising CHPs to develop, fund, and manage social and affordable housing projects throughout Queensland. With the HIF’s capital base recently doubled to $2 billion, initiatives like the Cairns Seniors Community Housing Project aim to address the pressing housing needs of seniors in the region.
How we helped
NAIF’s support has addressed a funding gap for the Cairns Seniors Community Housing Project. The gap is primarily due to two key factors: the lack of appetite of the commercial sector to provide loans for projects of this nature on the terms required, and the elevated operating and construction costs associated with the project’s regional location in Cairns.
NAIF's involvement is instrumental in providing financial support where commercial lenders are hesitant, thereby ensuring essential projects like the Cairns Seniors Community Housing Project can proceed. By understanding and responding to the unique challenges of regional developments, NAIF's financial assistance addresses the funding gap, enabling the project to move forward and fulfil its role in addressing the housing needs of seniors in Cairns.
The project will respond to strong demand for housing in Cairns and help address a housing shortage by delivering long-term affordable accommodation. The private rental vacancy rate in Cairns is currently very low at ca.1% (March 2024) and there are 3,200+ people (equivalent to 1800+ households) on the social housing register (ca. 64% of whom are Indigenous Australians).
IES Commitments
Participation
3%
Indigenous Engagement
Traditional owners of this land
- Gimuy Walubara Yidinji
The Gimuy Walubara Yidinji (Yidinji) People are the traditional owners of the lands encompassing Cairns and its surrounding rainforest and wetland regions in Far North Queensland. This region is known for its rich biodiversity, which has influenced their traditional lifestyle and practices.
The Yidinji people speak the Yidinji language, which is part of the Pama-Nyungan language family. Language is a crucial part of their cultural identity, helping to preserve traditional knowledge and practices.
IES Commitments
Community Housing (Cairns) Limited’s IES commitments include ongoing engagement with the Gimuy Walubara Yidinji people throughout the life of the project including commitments to:
- Investigate the use and incorporation of Yidinji knowledges and language to name buildings onsite.
- Work with the Gimuy Walubara Yidinji Elders Corporation in support of the aspirational Indigenous participation targets on the project.
- Commission a public artwork from a local Gimuy Walubara Yidinji artist, or an artist sanctioned by the Gimuy Walubara Yidinji Elders Corporation, to be displayed as part of the project.
- Donate annually to a trust or foundation nominated by the Gimuy Walubara Yidinji Elders Corporation.
- Identify opportunities for cadetships, apprenticeships or traineeships for Indigenous people onsite.
- Develop relationships with Indigenous housing organisations to promote accommodation opportunities for Indigenous people onsite and develop relationships with local Indigenous organisations and service provides in the Cairns region in support of services provision onsite.
- Indigenous participation target of 3% (achieved through % value of on-site sub-contract works to certified Indigenous businesses, or an equivalent % of labour hours performed by Indigenous employees on site).
