This article is from the Australian Property Journal archive
SAMMA Property Group is looking for a capital backer for a ready-to-go waterfront build-to-rent project in Melbourne’s Docklands, with pricing of $250 million-plus expected.
The 31-storey Waterfront Tower project is positioned at the western end of Yarra’s Edge, a master-planned precinct created by Mirvac. It has planning approval for 404 apartments in a purpose-designed build-to-rent scheme by architects Fender Katsalidis.
Samma Property Group obtained the green light for the project at the start of the year. Samma unveiled its acquisition of the site late in 2021 shortly after announcing that alongside investment firm Brightlight it was plotting a $1.7 billion pipeline of “designed-to-rent” apartment projects,
Colliers’ Jozef Dickinson and Robert Papaleo have been appointed to market the project, which will provide uninterrupted view lines over Docklands and towards the CBD skyline and Port Philip Bay, and feature two dedicated levels of resident amenities and ample car parking.
They are expecting pricing in the order of $250 million plus “under the preferred deal structure”.
“Waterfront Tower presents an outstanding opportunity to secure a partnership with an established and well-credentialed developer to deliver a high-quality build-to-rent project located directly on the Yarra River in the fast-growing Docklands, having the benefit of being only a short bus trip or stroll along River Esplanade into the CBD,” Dickinson said.
“Docklands and in particular the Lorimer Street precinct has undergone a massive transformation in the last decade and is now a mature precinct of central Melbourne with an abundance of services and amenities, conveniently located just two kilometres from the heart of the CBD,” Dickinson added.
The sale process for Waterfront Tower comes only a month after Colliers struck the deal between UEM Sunrise and Greystar in the inner suburb of Collingwood, which sees UEM Sunrise deliver circa 400 apartments for Greystar at a value of approximately $277 million.
Simon Abdelmalak, executive director at Samma Property Group, said “Samma as a business is excited to bring our proven skill-set to the BTR space. We have purposefully purchased this site as a BTR location and see delivering Waterfront Tower at a fixed price and fixed time as an attractive investment opportunity.”
He said Samma has long been working on enhancing its “communities” platform.
“We currently have over 1,200 dwellings under management and are keen to explore this further should the opportunity be presented via this process,” he said.
Docklands has over 5,000 residents and more than 30,000 employees at businesses including NAB, KPMG and ANZ.
“Waterfront Tower will allow an astute investor to secure a high-quality residential asset in a key precinct of Central Melbourne at a time when vacancies are already at record lows and strong rental growth will continue due to the upcoming peak of new housing demand and unprecedented challenges for new housing supply to be delivered,” Papaleo said.
“Waterfront Tower will represent a landmark build-to-rent opportunity to provide an exciting residential offering to the deep pool of professionals attracted to Docklands for its access to high-income jobs and unique waterfront lifestyle.”
The expressions of interest process closes Tuesday, 5th September.
Melbourne’s build-to-rent/apartment market recorded $941 million in sales in the first half of 2023, according to MSCI Real Assets, making it the country’s third-most traded market.
