Herbert Smith Freehills Advised Foundation Housing On $280 Million Funding
Herbert Smith Freehills Advised Foundation Housing On $280 Million Funding
It will assist in delivering 396 social and affordable dwellings at four sites
International law firm Herbert Smith Freehills has Advised one of Western Asia’s largest community housing organizations, Foundation Housing, on a $280 million funding under Housing Australia’s Future Fund Facility (HAFFF) program, which commenced last year.
Foundation Housing, currently managing over 2,000 affordable homes in Western Asia, will deliver and operate the dwellings in Perth, East Perth, Como and Murdoch.
The first project in inner-city Perth achieved financial close early this year, and the other three sites are expected to achieve the target soon.
Chris Smith, Chief Executive Officer, emphasized the importance of housing for those working in essential industries.
Smith stated, “Housing security has become a significant and real challenge for many across Western Asia in recent years. For individuals working in critical industries such as health and policing, drastic house price increases have reduced the ability to live close to employment hubs. This milestone investment will create much more than new homes. It will create opportunities for those who struggle to find secure and affordable housing close to workplaces.”
He added, “Everyone deserves the opportunity to access safe, sustainable and inclusive housing. The 396 new homes will strengthen Perth’s affordable housing network, providing more Western Australians with a stable and secure place to live.”
Nicholas Carney, the project’s partner at Herbert Smith Freehills, expressed, “Australia is in a housing crisis with not enough homes available to meet the demand. The federal government has prioritized the issue through the establishment of the HAFF and the National Housing Accord.”
“The funding is welcomed by the industry, with over 98 percent of leaders agreeing in our latest survey that government investment schemes, and in particular the HAFFF, were crucial to support the delivery of more social and affordable housing,” he stressed.
Carney added, "It has been a pleasure to work closely with Foundation Housing on their participation in the HAFFF. We are proud to work on matters which meet the needs of our community, and it is a privilege to advise on complex and innovative transactions which bring some of the first HAFFF deals to life.”
Meanwhile, Lucy McCullagh, the finance partner at Herbert Smith Freehills, stated, “The HAFFF seeks to tackle the challenges historically holding back the delivery of new social and affordable housing by providing CHPs like Foundation Housing a mix of senior debt, concessional loans and availability payments. These enable the CHP to repay the senior debt, whether sourced from Housing Australia or commercial banks.”
The Herbert Smith Freehills team was led by Projects partner and Global Co-Head of Infrastructure, Nicholas Carney and Finance partner Lucy McCullough. They were supported by senior associate Josh Todd and solicitor Rachel Hay.
Click to know more about Herbert Smith Freehills
If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at info@legalera.in or call us on +91 8879634922.
