Oxford Properties and Indi have acquired a new Build-to-Rent (BTR) development in Melbourne’s Southbank, while Gurner and Qualitas have unveiled a new BTR project in St Kilda.
Under the Southbank deal, Oxford and Indi have reached an agreement with PDG to develop a 42-level BTR tower with 434 apartments.
In St Kilda, the Gurner and Qualitas-backed GQ platform has announced a new BTR development project with a $300 million end value.
The projects bolster Melbourne’s position as Australia’s leading BTR market, with almost 8000 BTR units at an advanced stage in the Melbourne pipeline as of October this year, according to JLL.
Oxford, Indi’s Southbank project
The purpose-built tower will be located at 132 Kavanagh Street and will be near the CBD, public transport and the Southbank campus of the University of Melbourne.
It will also include 40 units to be offered as key worker housing.
PDG plans to commence construction in the second half of 2022, with a two-year construction program.
“A lack of housing choice is one of the most pressing issues facing major cities across the globe,” said Alec Harper, Head of Australia at Oxford.
“We are combining our capital and global experience of investing in, growing and delivering build to rent businesses and development projects to create new supply and improve housing choice for Australians.
“Growing our exposure to the Australian build to rent sector represents one of Oxford’s highest-conviction investment strategies.”
Investa Property Group launched Indi, a BTR management platform, in May this year.
3-7 Wellington Street, St Kilda
Qualitas, Gurner’s St Kilda development
The 3-7 Wellington Street site, known as Beach House, will comprise 300 homes across two towers spanning 12 and 28 levels.
The partnership said the permit for the 2,353sqm site had been amended to suit the vision for the BTR-backed mixed-use precinct, which will include over 3,700 sqm of resident amenities.
It will also feature 1,563 sqm of commercial and retail net lettable area.
The project will be the first BTR asset within the GQ portfolio to commence construction, with Crema Constructions having formally commenced works on site.
The St Kilda site follows the recent unveiling of the GQ platform’s two other build-to-rent sites at Southbank and Parramatta, as well as its $1.2 billion fundraising close.
“The third acquisition for the platform provides us with the critical mass to become a significant player in the build-to-rent sector, a very short time after its launch,” said Qualitas global head of real estate and co-founder Mark Fischer.
“This gives us a significant base from which to build, as we continue to deploy our committed fund capital into attractive off-market opportunities.
“With strong demand expected from institutional investors for high-quality completed build-to-rent assets over the coming years, our focus on delivering assets in the most desirable neighbourhoods and leveraging their existing surrounding amenity is a key differentiator for our platform.”
Last month, Macquarie Asset Management announced that it was funding Local’s first BTR asset, a 500-apartment project at Kensington in Melbourne’s inner north-west.
