This article is from the Australian Property Journal archive
DEVELOPER Tim Gurner and Qualitas have wasted no time unveiling the third seed asset for their $1.2 billion build-to-rent fund, announcing a new project for Melbourne’s St Kilda Junction as the fledgling sector gains further momentum.
The $300 million project will be delivered by their new GQ platform, which is eyeing a pipeline of 1,700 apartments in Sydney and Melbourne following last month’s oversubscribed raising.
They are planning 385-apartment project in Parramatta soaring 61 levels from a site acquired for about $70 million, and last week announced a 41-level tower on a Southbank site on the edge of Melbourne’s CBD that was converted from a build-to-sell project.
Their St Kilda Junction project, named Beach House, will be the first to kick off construction. It will consist of 300 residences across two towers spanning 12 and 28 levels at 3-7 Wellington Street. The permit for the 2,353 sqm site has been amended the vision for a build-to-rent-backed mixed-use precinct, and will now include over 3,700 sqm of resident amenities.
Among those are a commercial gym, indoor play areas for children, day spa facilities that include saunas and yoga rooms, a 14- person cinema room, a residents’ rooftop bar, private dining rooms – two of which have outdoor terraces – a swimming pool deck, a two-lane bowling alley with a bar, and table tennis and billiards tables.
There will also be 1,563 sqm of net lettable area across commercial and retail spaces.
Crema Constructions formally commenced works on site in recent days, with funding secured through a major Australian bank lender. Design of the project has been led by Warren and Mahoney. When complete, the precinct will offer uninterrupted panoramic views over the Melbourne CBD, Albert Park Lake and St Kilda’s beachline.
“St Kilda is a location that the team believes is ripe for build-to-rent, owing to its strong demographic profile that consists of many young, affluent renters who are seeking a level of residential product, amenity and service that are not currently available on the market,” Gurner said.
“I have always loved St Kilda and I’m a huge believer in its future – this development will be an important gateway to the area.” Gurner is already developing the $550 million ultra-luxe Saint Moritz residential project in the suburb, is looking to redevelop the former Cushion lounge site into a new hotel and club.
Qualitas global head of real estate and co-founder, Mark Fischer said the third acquisition for the platform “provides us with the critical mass to become a significant player in the build-to-rent sector”, adding that the Beach House site had been eyed off for the projects for some18 months.
“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.
“We expect assets such as Beach House to be considered trophy A-Grade multifamily assets in the future, in the same way that we talk about trophy commercial, industrial and retail assets currently,” he said.
Melbourne has emerged as the most active location in Australia’s fledgling build-to-rent market. It currently accounting for over 60% of the projects either proposed or under construction, helped by the Victorian government expanding build-to-rent concessions.
This week, Oxford Properties and Indi entered into an agreement with PDG Corporation to develop a 42 level build-to-rent tower in Southbank, while Samma Property Group and impact investment firm Brightlight have acquired sites in Southbank and Docklands for build-to-rent projects as part of a $1.7 billion pipeline.
Mirvac is one of the most prominent players in the sector, while US giant Greystar has unveiled plans for Australia’s largest development in the inner suburb of South Yarra, following its $1.3 billion multifamily venture fund raising.
