Herbert Smith Freehills Kramer advises Commonwealth Bank on the financing of 1,141 affordable homes across Victoria and Queensland

Herbert Smith Freehills Kramer (HSF Kramer) has advised the Commonwealth Bank of Australia (CBA) as the sole senior lender to Assemble, for the acquisition and development of 1,141 affordable single-family homes across Victoria and Queensland. 

The project, comprising of 3 and 4 bedroom family homes, will include:

• 969 dwellings over 24 housing estates across 9 local government areas (LGAs) in regional and suburban Victoria; and 
• 172 dwellings over 7 housing estates across 4 LGAs in regional Queensland. 

Some of the LGAs where this crucially important housing is being delivered include Hume (VIC), Greater Geelong (VIC), Greater Bendigo (VIC), Sunshine Coast (QLD) and Ipswich (QLD). 

The financing was supported by Housing Australia through the Federal Government’s Housing Australia Future Fund Facility (HAFFF). On their own, the portfolios represent approximately 2.9% of Housing Australia’s 40,000‑dwelling target, and 8.5% of the HAFFF Funding Round 1 dwellings commitment. 

Assemble is an end-to-end housing company that originates, delivers, and manages sustainable housing investment opportunities.

The HSF Kramer team advising on the matter was led by Finance Partner, Lucy McCullagh, with support from: 

• Finance: Senior Associate Edward Kerr and Solicitor Yasemin Akbulut; 
• Real Estate: Senior Associate Jordana Cawood and Senior Conveyancing Paralegal, Fiona Chandler; and
• Projects, Energy, and Infrastructure: Partner Joseph Varghese and Senior Associate, Alyce Rae. 

Finance Partner, Lucy McCullagh, said “We were honoured to be involved in this landmark transaction, advising CBA and supporting Assemble and its partners. This financing represents a critical step in advancing Australia’s social and affordable housing policy objectives, supporting the delivery of approximately 1,100 new homes in Victoria and Queensland.

The transaction demonstrates how government‑backed housing initiatives can successfully leverage senior bank capital to deliver long‑term, sustainable housing outcomes at scale. We were pleased to assist CBA on a financing that aligns strong commercial outcomes with meaningful social impact, and which reflects the growing role of institutional lenders in supporting national housing priorities.”

CBA’s Michael Thorpe, Managing Director, Specialised Industries, said, "These single-family home portfolios add important diversity to Australia’s affordable housing stock across multiple regions, and this transaction helps to build momentum and scale in a sector where long term capital and certainty are critical. We appreciate HSF Kramer’s advice on these transactions as we underwrote senior financing for Assemble and its partners."

HSF Kramer has a long history of supporting clients to deliver social and affordable housing projects. Other recent examples include advising:

• Foundation Housing on the construction, financing, and development of 213 social and affordable homes in Perth's Murdoch Precinct, known as Rise@Murdoch 
• Foundation Housing on $280 million in HAFF funding to deliver more social and affordable homes in WA
• Conscious Investment Management on its financing to acquire 102 social and affordable homes in Box Hill, Victoria, in partnership with St George Community Housing
• Evolve Housing on the long-term strategic financing of 85 social and affordable apartments located in Sunshine North, Victoria, with funding from Housing Australia and Cerberus  
• A consortium comprising QIC and the Brisbane Housing Company on the development and implementation of new projects under the Queensland Housing Investment Fund to deliver 600 new social and affordable homes.
• Community housing providers and other organisations in relation to funding from Housing Australia under the first funding round for the $10 billion Housing Australia Future Fund Facility (HAFF)
• Department of Community & Justice and NSW Treasury in relation to the establishment of the A$1.1 billion NSW Social and Affordable Housing Fund for the procurement of social and affordable housing in NSW, and on the financing aspects of the completion of transactions for the first and second stages of the fund
• Victorian Government Department of Treasury and Finance and Homes Victoria on the financing and delivery of social and affordable housing projects in Victoria, including under the Low Interest Loan Program