This article is from the Australian Property Journal archive
PROLIFIC developer Tim Gurner and Qualitas have announced their first build-to-rent project in Melbourne and second overall after raising $1.2 billion last month for a new development fund.
Gurner struck a deal with owners of the former nightclub and now hostel site in Southbank, the Catalfamo family, to develop a $250 million build-to-sell tower with 400 apartments, but as part of the Qualitas-backed GQ platform will now deliver 394 build-to-rent apartments over 41 levels at the 334 City Road property.
GQ’s oversubscribed raising will fund 1,700 apartments in Sydney and Melbourne, beginning with a 385-apartment project in Parramatta soaring 61 levels from a site acquired for about $70 million.
The Southbank tower will include 1,910 sqm of ground-floor retail amenity, as well as hospitality, a rooftop facility, a health and wellness facility including a two-storey gym, a cinema and entertainment precinct, and more.
“We have a very strategic business plan for our build-to-rent platform, and South Melbourne is Melbourne’s most-established and mature rental market, making it an obvious target location for us,” Gurner said.
“This site is the epitome of what we are trying to create in the fund, with iconic locations where our buildings can set a new benchmark for what is possible, and where our clients can walk to the best that Melbourne has to offer.”
Melbourne’s city fringe has just seen Samma Property Group and impact investment firm Brightlight acquire sites in Southbank and Docklands for build-to-rent projects as part of a $1.7 billion pipeline of “designed-to-rent” apartment projects.
“Having recently announced the first seed asset for the fund in Parramatta, we are now executing on our Melbourne pipeline as we seek to deliver more projects of this scale and significance, in order to create a market-leading product,” Qualitas global head of real estate and co-founder Mark Fischer said.
“This investment allows us to deliver a differentiated rental product to a neighbourhood that is fundamentally a strong rental catchment but has a homogeneity of offering to those customers.”
Designed by Warren and Mahoney, the building is targeting net zero emmissions, using no gas, bearing a 5-star green star rating, and a 6.5-star NATHERS rating.
Qualitas and Gurner have teamed up with Newmark Capital for the $1.5 billion transformation of retail and entertainment complex, the Jam Factory.
Melbourne has emerged as the most active location in the build-to-rent space nationally, accounting for over 60% of the projects either proposed or under construction, helped by the Victorian government expanding build-to-rent concessions.
Mirvac is undertaking major developments next to Queen Victoria Market and on Spencer Street, and has partnered with local developer Milieu for a project in Brunswick.
US giant Greystar unveiling plans for Australia’s largest development in the sector in the inner suburb of South Yarra, following its $1.3 billion multifamily venture fund raising, Canadian group Oxford planning a $450 million development with over 700 units in the inner western suburb of Footscray, and global real estate firm Hines also buying a Brunswick site for a 250-unit apartment complex.
The country’s biggest superannuation fund, AustralianSuper took a 25% share in build-to-rent and alternative housing developer Assemble.
