This article is from the Australian Property Journal archive
SOME two decades after making a purchase, private developer and family office, the Suleman Group is forging ahead with development of a 20,000 sqm landholding in Melbourne’s western suburbs after securing stage one funding.
Construction is now underway at the $275 million mixed use precinct, Union Quarter, located at 31-69 McLister St in Spotswood. ABD Group has been awarded the contract to construct the development, which is earmarked to reach completion in early to mid-2022.
The development is being realised as a build-to-rent project, and is believed to be one of the larger offerings of its type undertaken by a private family office. Union Quarter will consist of 300 apartments and an additional 34 dwellings dedicated for specialised disability accommodation under the National Disability.
Funding for the first stage has been secured through ANZ Institutional Banking. Stage one will ultimately comprise a neighbourhood activity centre, consisting of a 4,200 sqm Woolworths supermarket, a 1,136 sqm medical, health and fitness offering, 1,550 sqm Dan Murphy’s and a mix of specialty retail, café and town square.
According to Urbis, the development is projected to create 550 jobs during construction, and a further 471 ongoing jobs on completion, adding approximately $45.3 million in value to the Victorian economy once operational.
Group development manager, Zoran Pavlovic said, “we are acutely aware that with the a lack of project commencements in the coming year, commencing construction of a build-to-rent precinct as a countercyclical development play will mean we will be ready to deliver much-needed new accommodation to the rental market by 2022 and beyond”.
Also in Melbourne, major diversified property group Mirvac, together with Milieu have recently launched a build-to-rent community in the suburb of Brunswick, scheduled for completion in late 2024. Mirvac’s build-to-rent pipeline in the city also includes the former Melbourne Convention Centre site, construction has kicked off at the Munro site in the Queen Victoria Market precinct.
US company Greystar is planning to redevelop neighbouring properties in South Yarra into a mixed use project with over 500 build to rent apartments and 5,000 sqm of office space.
According to CBRE, the asset class is gaining momentum due to a weakening of new residential supply across Australia, providing potential tailwinds for the sector over the next 12 to 24 months.
Suleman Group managing director, Sam Suleman the Union Quarter project has been 20 years in the making.
“We first acquired the site some two decades ago and have been strategically holding and value-adding the asset, until the appropriate time to activate it came along.
“We genuinely believe in the underlying housing demand fundamentals, particularly in the fast-gentrifying area of Spotswood, which has experienced rapidly rising demand for quality residential dwellings.”
Rick Berry, James Lockwood and Bianca Pannunzio of Fitzroys are marketing the retail and medical leasing of Union Quarter.
“Melburnians are embracing their local communities even more in the current environment. Union Quarter Activity Centre will offer a comprehensive shopping and lifestyle hub for residents, and a focal point for the next phase of growth in Melbourne’s inner west,” Berry said.
