A redevelopment in Sydney’s Inner West will be the first to receive a guarantee under the NSW Government’s $1 billion Pre-sale Finance Guarantee program to fast-track new homes.
More than 225 new apartments, including 59 affordable homes, will now start construction sooner as part of the $285 million Rozelle Village revamp of the derelict former Balmain Leagues Club site on Victoria Road, which received state significant development approval last year under the Infill Affordable Housing pathway.
The mixed-use precinct also includes retail spaces, community facilities, and a public plaza.
The Guarantee is supporting 32 affordable homes off the plan, giving developer PERIFA confidence to secure construction finance and deliver much-needed homes in the Inner West.
“Rozelle Village is a great example of how our housing reforms and initiatives are working together to deliver great results,” said Minister for Planning and Public Spaces, Paul Scully.
This arrangement gives the developer time to lock in a Community Housing Provider to purchase and manage the project’s affordable homes, with a guarantee the Government will buy the 32 units if the level of qualifying pre-sale requirements is not met prior to project completion expected in 2028.
“Rozelle Village is set to become the Inner West’s most vibrant, mixed-use precinct catering to the local community and residents,” said PERIFA Group Managing Director, Fabrizio Perilli.
“The location provides excellent access to local employment and the critical Infrastructure that key workers rely on every day. Strong demand for our development is already evident, with pre-sales for market homes exceeding expectations.
“As the first developer to be accepted into the NSW Government Pre-Sale Finance Guarantee, we are now able to accelerate construction of these much-needed homes, while working to secure the right Community Housing Provider, ensuring long-term social impact and community benefit.”
Since the launch of the program in October, 31 Expressions of Interest have been received from developers across the state, with a third of these already invited to submit full applications.
In addition to the Rozelle Village project, over $100 million worth of pre-sale commitment requests have been received and are currently under assessment. If approved, this support will unlock the construction of over 350 new homes across metropolitan Sydney and regional NSW.
Under the Pre-sale Finance Guarantee, the Government may commit to buy, off the plan, up to 50% of homes in approved developments, valued at up to $2 million each. Support can range from $5 million to $50 million per project, the Guarantee then allows developers to achieve commercial construction finance.
“This is exactly what the $1 billion Pre-sale Finance Guarantee was designed to do – move approved projects from paper to construction,” said Treasurer, Daniel Mookhey.
“By providing a targeted pre-sale guarantee, we’re giving the market the confidence it needs to secure finance and start construction, without the Government having to spend a dollar upfront.
“This is a smart use of the State’s balance sheet, stepping in where the market has stalled, but only on projects that are credible, approved and ready to build.”
