Global real estate firm Hines has acquired a build-to-rent (BTR) development in Melbourne, marking the company’s third BTR acquisition in Australia.
The development is located at 15-33 Bank Street and 35-37 Bank Street in South Melbourne – about 2 kilometres from the Melbourne CBD.
The development will comprise about 400 units and will be serviced by existing public transport, as well as the new ANZAC metro station, which is expected to open in 2025.
The deal is Hines’ third acquisition in less than nine months, following its acquisitions at 10 Ballarat Street, Brunswick and 36-58 Macauley Road, North Melbourne.
Sam Bisla, head of living, Australia at Hines, said Australian BTR was a key strategic growth market for the firm and investors.
“Our global expertise, coupled with local track record, in residential and BTR development, operations, and investment management has allowed us to secure a portfolio of over 850 BTR units with an end value of approximately A$820 million,” Bisla said.
Hines Australia’s Senior Managing Director David Warneford said they would continue to seek high-quality assets in key strategic cities such as Sydney, Melbourne, Brisbane and Canberra.
“We believe this project is well-positioned to benefit from the return of population and jobs growth in Melbourne and the shortage of quality rental housing in this location,” Warneford said.
Recent BTR deals in Melbourne include Time & Place and Corsair Investment Management’s purchase of a site in Alphington, Melbourne for about $48 million to develop a $500 million mixed-use precinct in March.
In February, Make Ventures bought a Toyota dealership site in Preston in Melbourne’s north from McMillan Property Group for $40 million to develop into a build-to-rent (BTR) property, while Altis Property Partners and Aware Super acquired another commercial building in Preston, Melbourne for $14.04 million for a build-to-rent (BTR) tower.
Last December, Oxford Properties and Indi 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.
Macquarie Asset Management announced last November that it was funding Local’s first BTR asset, a 500-apartment project at Kensington in Melbourne’s inner north-west.