This article is from the Australian Property Journal archive
INVESTA has furthered its move into the living sector, striking a partnership with The Salvation Army to develop a $230 million studio living project in the Sydney CBD.
When completed, the project will have 245 fully furnished, self-contained studio apartments as well as resident amenity including co-working spaces, indoor entertainment and dining areas, and outdoor terraces, while a stratum across ground and level one will be handed back to The Salvos for it to own and manage.
The Salvos put out the call in the middle of 2023 for a joint venture partner to help them knock over a 10-storey building and rebuild on the 1,038 sqm site, which is less than 100 metres from Hyde Park.
The first four floors are occupied by the Salvos, with levels one to three forming an auditorium with no floor plates. Multiple universities occupy the six floors above, on leases expiring next year.
“140 Elizabeth Street has a long and important history within The Salvation Army, so it was important for us to select a partnership arrangement that enables us to maintain an ongoing presence in Sydney’s CBD where we will continue to reach and serve the local community, as well as have a place of worship and ministry,” Sydney City Salvos manager, Mitchell Evans.
Studio living aims to cater to the lifestyle aspirations those who prioritise proximity to work, public transport, entertainment and other amenity and who want a cost-effective alternative to traditional housing in CBD and fringe locations.
“There is increasing demand for rental housing options that provide residents with quality product that is well located to employment centres and transport, and where they can become part of a community,” said Investa CEO Peter Menegazzo.
“This evolving housing need has created strong market fundamentals that support diversifying and expanding our living sector portfolio.”
Investa’s existing projects in the living sector have yielded 1,400 completed or under construction build-to-rent apartments as part of its Indi platform with Oxford Properties Group. It includes the recently opened 234-apartment tower directly above the recently opened Gadigal Metro Station – which is also the first purpose-build-to-rent asset in Sydney’s CBD – and a topped out development next to busy Footscray train station in Melbourne, which will comprises 702 apartments.
Adam Crowe, chief investment officer, Investa said, “Significant tenant demand for greater diversity of housing, planning and regulatory certainty, and Investa’s development skillset that allows us to scale studio living is what is driving our investment in this emerging sector.
“Studio living, like build-to-rent, is well established overseas and we are very pleased to once again be ahead of the curve in Australia to offer a housing option that meets the demand of customers and our capital partners.”
Sydney is crying out for more housing supply as vacancy rates in the rental market remain crushingly low amid a national housing crisis.
Subject to planning approval, construction at 140 Elizabeth Street is expected to commence in 2027, with the asset expected to be operational in late 2029.
