This article is from the Australian Property Journal archive
PROPERTY giant Lendlease is set to finally enter Australia’s fledgling build-to-rent market, striking a partnership with QuadReal Property Group to deliver an apartment building with 443 residences at Brisbane Showgrounds.
Lendlease already has a $28 billion global build-to-rent pipeline, having delivered 2,600 apartments in the established Unites States multifamily and United Kingdom markets, and has a further 1,500 in deliver in Chicago, New York and London.
“We see enormous potential in the emerging build-to-rent sector in Australia with institutional investors attracted to high-quality residential real estate for its resilient income profile,” said Lendlease Australia CEO Dale Connor.
“In the Australian market we believe there’s strong demand for long-term, premium rentals in quality locations. Our partnership with QuadReal will bring the best of our shared global experience and capability to deliver one of the finest examples in Australia.”
Lendlease said it is “actively pursuing other key build-to-rent opportunities in Australian capital cities with investors”.
QuadReal will bring experience in managing and developing a global portfolio of 60,000 residential units to the partnership, investing side by side with Lendlease. Lendlease will also act as development and investment manager.
“The residential build-to-rent sector has been one of QuadReal’s strongest global convictions for some time now given its resiliency through economic cycles and the community benefit of the commitment to increase the places for people to live,” QuadReal managing director, Peter Kim said.
The purpose-built Brisbane Showgrounds development will deliver a mix of studio, one, two and three bedroom apartments over 37 levels. Residents will have access to amenities and communal spaces which will include a 25-metre lap pool with beach edge, podcast and music recording studios, BBQ pavilion, fully-equipped gym, co-working facilities, outdoor spa retreat, dog wash facilities, yoga room and resident lounges.
It will also provide dedicated on-site service teams for residents with a 24-hour concierge service.
The building will be fully electric and target a 5 Star Green Star Buildings Version 1 rating. Construction is due to commence in early 2023 and residents can take occupancy in late 2025.
While the bulk of Australia’s build-to-rent pipeline is in Melbourne, more developments are beginning to emerge in Brisbane and Queensland. US company Sentinel has just acquired a 1.4-hectare site on the Gold Coast, earmarked for a 300-apartment build-to-rent development, while projects underway include Pellicano’s Berwick House in Fortitude Valley.
Australia’s build-to-rent sector is set to mature into a $9.6 billion market by 2027.
Federal government tax arrangements still present challenges to the sector, while the Victoria and NSW governments have introduced concessions.
