The State Government is seeking expressions of interest (EOI) for the proposed divestment of up to 40 per cent of Keystart's loan book.
Treasurer Mike Nahan and Housing Minister Colin Holt today invited interested parties to submit an expression of interest that demonstrates they have the capacity, capability, experience and understanding to complete the proposed transaction.
Dr Nahan said the project offered a significant opportunity for the private sector to partner with Keystart to continue meeting its social objectives through the delivery of its highly successful affordable home loan program.
"As well as marking another milestone in the State Government's asset sales program, this also represents an important step in ensuring a sustainable future for the home loan program by reducing its reliance on Government borrowings," he said.
"There will be no change to the service levels or terms and conditions for existing Keystart customers and the transaction is not expected to impact upon Keystart's existing interest rate setting policy, lending eligibility criteria or rigorous loan assessment process."
Mr Holt said Keystart had played a pivotal role in the Liberal National Government's Affordable Housing Strategy, which had delivered more than 20,000 homes since 2010.
"The Government remains committed to supporting Keystart as we set our sights on achieving 30,000 affordable homes for West Australians on low-to-moderate incomes by 2020," he said.
Following the evaluation of the expressions of interest, a shortlist of respondents is expected to be finalised by the end of April, with the partial divestment expected to be completed in the second half of the year.
Keystart provides low deposit and shared equity residential home loans to eligible West Australians on low-to-medium incomes who are unable to obtain finance from private lenders
Interested parties are encouraged to register their interest by contacting Keystart to obtain a copy of the invitation
The EOI invitation can be accessed by calling Keystart's procurement officer on 9338 3126. For more information, visit http://www.keystart.com.au
EOI close at 3pm WST on March 30, 2016
Treasurer's office - 6552 5700
Housing Minister's office - 6552 6100