The $500 million Apartment Fast-Track Fund Program (the Program) aims to accelerate apartment development and increase housing supply in key strategic areas across Greater Adelaide by providing government-backed purchase guarantees for eligible off-the-plan apartment developments.
Guarantees will allow eligible projects with development approval to meet financier pre-sale requirements sooner and bring apartments to market more quickly.
The Program will assist in achieving the government’s target to build 13,500 new homes each year and to broaden housing choice across the state.
How the Program works
The Program supports eligible apartment developments by providing government purchase guarantees for selected apartments within a development. This can help developers satisfy lender pre-sale requirements and commence construction sooner.
Before applying for the Program, interested developers are required to submit an Expression of Interest to ensure they meet the Program’s core eligibility requirements. If these requirements are met, developers may be formally invited to apply for the Program and asked to provide additional supporting information.
Applications will be assessed by the Guarantee Advisory Panel against the Program Guidelines, and applicants will then be notified of their assessment outcome.
Successful applicants will enter into a contractual arrangement with government and their financier to finalise the guarantee. It is the intent that the government guarantee will be temporary until such time the developer can privately sell the guaranteed apartments.
Who can apply?
The Program is available to eligible apartment developments:
- Located within South Australia, noting priority will be given to projects in the Adelaide CBD, North Adelaide and Port Road precinct. These priority areas are highlighted on the map below;
- That have a minimum of 20 dwellings within the development; and
- That are capable of commencing construction within six months of acceptance into the Program.
Figure 1: Program Priority Areas
Within eligible developments, guarantees are available:
- For dwellings with a value up to $1.5 million; and
- Up to 50 per cent of dwellings within an eligible development, up to a total value of $50 million.
Developers must demonstrate that their development is commercially viable and that they have the capability, experience and financial capacity to deliver the project.
Detailed eligibility requirements are available in the Program guidelines (PDF, 1.9 MB).
Prior to submitting an Expression of Interest, please read the Program terms and conditions (PDF, 206.3 KB).
How to apply
1 Submit an Expression of Interest
Developers interested in the Program must first submit an EOI. The EOI asks for information regarding the developers, the development and the guarantee being requested from government. The EOI ensures only developers that meet the Program's core edibility criteria progress through to the full application stage.
Submit an Expression of Interest (via iApply)
2 Invitation to apply
Developers that meet the core eligibility requirements may be invited to submit a full application. Developers (now Applicants) will receive a detailed information request outlining the documentation required for assessment.
3 Application submission and fee
Applicants submit the requested detailed information for assessment.
Required information will relate to the development (such as feasibility findings, financial information, timelines, sales strategies and funding arrangements, among other information), as well as relating to the developer and other associated parties (such as builders and contractors).
Submitting an application does not guarantee approval.
4 Assessment and due diligence
Applications undergo detailed assessment against the Program’s Guidelines by the Guarantee Advisory Panel, which provides recommendations to the Treasurer.
5 Treasurer consideration and decision
The Treasurer considers advice from the Guarantee Advisory Panel and makes a final decision as to which developments are supported through the Program.
The Treasurer is not obliged to approve any Application.
6 Outcome and offer
Successful applicants will receive a formal offer setting out the proposed guarantee arrangements and next steps.
7 Execution of Program documents
Successful applicants enter into the required legal agreements with the government and relevant financiers before participating in the Program.
Fees
The following fees apply to participation in the Program.
Fee | Amount (incl. GST) | Description |
|---|---|---|
Application Fee | $20 000 | The Application Fee is payable when a formal application is submitted. |
Establishment Fee | $30 000 | The Establishment Fee is payable following acceptance into the Program. |
Facility Fee | 1% per annum on the value of the government guarantee | The Facility Fee is charged on a monthly pro rata basis, on the value of the remaining guarantee. As underwritten dwellings are sold, the facility fee will reduce accordingly. |
Guidelines
Detailed information on Program eligibility and the assessment process is available in the Program guidelines (PDF, 1.9 MB)
Development of the Guidelines has been informed by engagement with industry. View the Consultation feedback and response summary (PDF, 348.6 KB).
Contact us
For enquiries about the Program please contact apartmentfund@sa.gov.au.