The Plenary Group, Qualitas and Capella Capital are participating in a Victorian housing tender worth up to an estimated $400 million to allow commercial build-to-rent housing to be built on public land alongside state-owned social housing.

The three are part of a group that has submitted preliminary development proposals on three existing public housing estates in Flemington, Prahran, and Brighton.

The tender follows an earlier deal announced in March to redevelop three properties in North Melbourne, Northcote and Preston with developer MAB and housing provider HousingFirst.

But unlike in previous deals, the Victorian government is looking to hold on to the site, awarding it under a so-called land lease strategy that would see a company constructing and running housing and associated services which will return to the government at the expiry of the contract.

The growing problem of affordability of accommodation in Australia and the lack of stable long-term rent in well-located areas is encouraging governments to try new ways of providing housing.

“We’re looking at new and innovative ways of making sure people at risk of homelessness can get the housing they need,” Victorian housing minister Richard Wynne said.