Arthur Naoumidis

Fractional investment platform provider DomaCom Limited (ASX:DCL) (‘DomaCom’ or ‘the Company’) is pleased to announce that it has partnered with leading Australian Community Housing Provider (CHP) BlueCHP Limited to deliver up to $250 million in affordable housing for essential workers (teachers, nurses, firefighters, police) during 2021.

DomaCom and BlueCHP are aiming to begin with an initial pilot project of $10 million.

The DomaCom Affordable  Property Accelerator (RPA) programme (formerly known as Rent-To-Own) will be used to allow investors to invest in affordable housing properties that will be managed by BlueCHP.

BlueCHP is able to access via its financier low-cost loans that will be used to deliver a 25% rental discount to essential workers. Based on 40% loan to valuation ratio this would represents a commitment of $250 million to affordable housing.

Additionally, the RPA programme uses a discount obtained from developers to deliver a price discount to investors as well as an additional leasing incentive of 5% equity to the essential workers.

DomaCom CEO Arthur Naoumidis said: ”One of the hurdles for investors in helping to deliver affordable housing is that they cannot sacrifice investment returns to deliver ethical investment outcomes. This is particularly important to superannuation funds as they are required to comply with the Sole Purpose Test when investing and are not able to accept discounted investment returns even if it is for a good social purpose. This project will both deliver attractive investment returns whilst also providing affordable housing to essential workers.”

BlueCHP CEO Charles Northcote said: “Accessing capital has been one of the major issues for community housing providers and this arrangement solves this problem by allowing private investors to complement the low-cost NHFIC loans that we have been able to access since 2018. BlueCHP has delivered over 1,700 affordable homes during the past 10 years and looks forward to being able to accelerate the delivery of additional affordable housing properties.”

Highlights

• DomaCom and BlueCHP enter into agreement to deliver $250 million in affordable housing in 2021
• BlueCHP is a Tier 1 Community Housing Provider (CHP) which will seek to access low-cost government housing loans via the National Housing Finance and Investment Corporation (NHFIC)
• The project will deliver affordable housing for essential workers with a rental price 25% lower than market rents
• The DomaCom Rental Property Accelerator product will access developer distribution discounts to deliver investor discounts and equity gifting to essential workers
• Essential worker tenants will receive 5% equity in the property they are renting over the first 5 years

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