Case Study: One on Aberdeen
One on Aberdeen is an award-winning, mixed-tenure apartment development in Perth’s inner city. Completed in 2014, it stands on the corner of Aberdeen and Pier Streets and exemplifies how government and the private sector can collaborate creatively to deliver high-quality, affordable urban infill housing.
Project Snapshot
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Location: 15 Aberdeen Street, Perth
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Development Value: Approximately $73 million
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Scale: 161 residential apartments, 7 commercial units, 13 storeys
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Affordable Housing Mix: ~50% of dwellings made available to people on low and moderate incomes
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Award: Winner of the 2016 UDIA National Award for Affordable Development
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Ashley Kerfoot's Role: Lead Advisor and Transaction Manager
Background and Context
The Department of Housing WA (the Department) owned the land and recognised that simply selling it, while generating revenue, would limit its ability to influence housing outcomes and secure social and affordable housing in a strategic infill location. By instead opting to become an active equity partner, the Department was able to retain control over the affordability aspect of the development and ensure the project met broader policy goals.
Diploma Properties was selected as the private-sector development partner through an open market Expression of Interest (EOI) and Request for Proposal (RFP) process, underscoring the project’s commercial rigour. In doing so, the Department brought private-sector capital and expertise to the table, while leveraging its land as equity. This pioneering approach not only achieved strong commercial returns and maximised social outcomes, but also paved the way for high-density housing in a once-underutilised precinct of inner-city Perth.
By using the site as equity, the Department was able to:
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Leverage $6.3 million in private equity and $42.1 million in debt finance, underpinned by land valued at $5.7 million.
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Retain part-ownership of completed units for social and affordable housing programmes.
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Realise a commercial return on land equity while achieving important social policy objectives.
This approach was driven by the State Government’s Affordable Housing Strategy, which challenged agencies to “use government land to efficiently leverage private capital and expand affordable housing supply.”
Image credit: Diploma Properties
Project Highlights and Key Outcomes
Urban Infill and Catalyst Effect
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The site was previously an under-used car park; One on Aberdeen now plays a pivotal role in revitalising an emerging precinct on the eastern edge of Northbridge.
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Its bold façade, active street frontages, and commercial tenancies have attracted further interest in the surrounding area, transforming the local streetscape.
Housing Affordability and Mixed Tenure
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Nearly 50% of apartments were offered at affordable price points or subsidised rents, including:
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Social Housing for households on incomes up to $40k per annum
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Affordable rentals (including NRAS) for incomes up to $65k p.a.
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Shared equity home ownership for households up to $90k p.a.
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Grants and incentives for key workers on incomes up to $120k p.a.
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Integrating diverse incomes and tenures within the same building reduces stigma often associated with concentrated pockets of social housing.
Financial and Commercial Success
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The project’s total development cost of around $72–73 million was funded via limited-recourse project debt (approximately $42 million), $6.3 million in private equity, and the Department’s land equity.
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Equity returns for participants exceeded 35%, showing that affordability can complement commercial viability.
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The Department secured returns worth $11.23 million, reinvesting a large portion to retain affordable units.
Design and Construction Quality
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The 13-storey building includes studios, one-bedroom, and two-bedroom apartments, offering a range of layouts and price points.
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Common areas and podium-level setbacks minimise overshadowing and maintain a human-scale streetscape.
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High-quality finishes, such as glazed external balustrades and stone benchtops, help maintain standards without compromising on affordability.
Image credit: Diploma Properties
Innovative Transaction Model
One on Aberdeen succeeded largely because of the land-as-equity approach. Rather than an outright land sale, the Department:
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Contributed land as its equity share.
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Remained an active partner throughout design, financing, and construction to uphold affordability targets.
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Employed limited-recourse finance structures, carefully balancing risk to government while attracting private debt.
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Shared risk and reward with the private developer, ensuring strong mutual incentives to deliver on time and on budget.
Transferable Lessons and Skill Building
Upon completion, the Department conducted debrief and knowledge-transfer sessions highlighting:
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Risk/Return Fundamentals: Understanding how to price and manage risk in a high-density, mixed-tenure project.
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Market Positioning and Sales: Merging traditional off-the-plan marketing with special incentives for key workers, shared-equity purchasers, and affordable rental providers.
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Project Governance: Establishing robust financial oversight and clear approvals, crucial when government is a stakeholder in a private-sector-led joint venture.
Social Impact
A key objective was integrating lower- and moderate-income tenants into a quality urban environment. Media coverage noted that combining households across a range of income levels promotes community acceptance and breaks down the stigma often linked to public housing.
Conclusion
One on Aberdeen demonstrates a pioneering method of delivering affordable, high-quality urban housing. By partnering under a limited-recourse, land-as-equity model, the Department of Housing WA:
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Expanded housing supply in a high-demand inner-city precinct
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Offered up to half the apartments at affordable price points or rents
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Achieved strong commercial returns, showcasing the viability of mixed-tenure infill developments
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Demonstrated a structure that other government-led projects can replicate
On a personal note, the positive social impact of One on Aberdeen was made clear when I had the opportunity to join one of the social housing tenants in their apartment for afternoon tea. Hearing their journey and learning how stable, well-located accommodation had changed their life underscored the lasting value of this project.
Overall, One on Aberdeen stands as an exemplar of innovation, commercial acumen, and social responsibility, proving that quality affordable housing and robust financial outcomes can go hand in hand.
Ashley Kerfoot