Global law firm Ashurst has advised Aberdeen Concession Infrastructure on its mezzanine financing of the affordable housing and Housing Australia Future Fund Facility (HAFFF) project in Rivervale, Western Australia.
This innovative financing structure, which combines concessional and commercial debt with equity provided in the form of mezzanine funding, offers a replicable model for delivering affordable housing projects and may serve as a blueprint for future initiatives in the sector.
The project is being funded through a combination of:
- the HAFFF initiative;
- a concessional loan granted by Housing Australia under the National Housing Accord Facility, to be supported by availability payments during the operating phase;
- a senior debt construction loan facility from Australia and New Zealand Banking Group Limited; and
- a mezzanine debt facility.
The HAFF, established on 1 November 2023 by the Housing Australia Future Fund Act 2023 (HAFF Act), is a dedicated investment vehicle providing additional funding to support and increase social and affordable housing, as well as other acute housing needs, including the particular needs of Indigenous communities and housing services for women, children and veterans.
The Ashurst team was led by partner Chris Redden, supported by senior associates Kate Latta and Matthew Selth and associates Stella Lee and Jonathan Chew (Projects & Energy Transition).
