This article is from the Australian Property Journal archive
DAVID Southon’s Aliro Group-backed build-to-rent platform Novus has been given the green light for a 215-apartment tower on a car park site in Melbourne’s St Kilda Road precinct.
The 2 Bowen Crescent site was previously slated for a luxury apartment development until Novus acquired it in May last year, taking the developer’s build-to-rent portfolio beyond $1 billion. Novus has now settled on the deal, negotiated off-market via Walter Occhiuto of Dawkins + Occhiuto.
The plan redesign by Rothelowman Architects has now been approved by the City of Port Phillip Council.
Novus on Bowen will comprise 215 apartments across 18 levels and include a mix of studio, one-, two-, three- and four-bedroom homes, located 200 metres from the under-construction Anzac train station that will open in 2025.
The rooftop terrace will provide uninterrupted views across the Domain and Albert Park.
Amenities will include a full-line gym, indoor pool, wellness area, sauna and steam room and ice plunge.
The building will target an average 7-star NatHERS, net zero emissions during operations, be an all-electric building, allow for generation of renewable energy on-site, employ green electricity via a building=embedded network, and all parking will be future-proofed for EV charging.
Novus CEO Adam Hirst said Novus on Bowen provides an important contribution to Australia’s flourishing BTR sector, providing much-needed supply to the apartment market at a time where it has never been more important.
According to Charter Keck Cramer, Melbourne’s apartment market was incredibly weak throughout 2023, with just 2,600 apartments launched, the lowest level since 2009 and down 60% on 2022. There were just 7,600 apartment completions over the year, down 6.8%, and well below the 10-year average of 13,500 per annum.
Novus on Bowen will be company’s second addition to the Melbourne skyline, and is expected to come to the market in 2026.
“The site is truly one-of-a-kind, adjacent to the soon-to-be-completed Melbourne Metro Anzac station, providing direct access to major employment, education and health care precincts, every four minutes,” Hirst said.
Novus has projects in Paramatta, Chatswood and Melbourne, while its flagship Southbank asset, Novus on Sturt, is set to welcome our first residents later this year.
Melbourne currently holds the lion’s share of completed build-to-rent stock in the country, with a 48% share, attributed to its higher availability of well-located larger sites with schemes permitting 300-plus apartments. Last month, Macquarie-funded build-to-rent platform Local Residential has closed its inaugural managed venture with a US pension fund, and will deliver two new build-to-rent projects in South Melbourne and Box Hill worth a combined $650 million.
Australia’s build-to-rent supply will more than triple by 2026, with an additional 16,500 apartments set to enter the market, according to Colliers.
Government have been introducing tax breaks in a bit to spur development. Last month, legislation was introduced to federal parliament that would see application fees for foreign investment in build-to-rent projects cut, while the Albanese government is also planning to halve the withholding tax rate for eligible fund payments from managed investment trusts to foreign residents on income from newly constructed residential build-to-rent properties.
