This article is from the Australian Property Journal archive
PERTH’S beachside suburb of Scarborough may be home to one of the country’s first build-to-rent projects, after Singaporean investment manager Meadpoint acquired the Sunmoon Boutique Resort with ambitious conversion plans.
It paid $8.3 million for the 3,035 sqm site at 200 West Coast Highway, which has 45 suites across two buildings.
Meadpoint will look at utilising the property’s current configuration as it seeks to establish one of Australia’s first projects within the fledgling sector.
Recently, Ernst & Young partner Luke Mackintosh said the rules on managed investment trusts and Australia’s overall current tax regime are discouraging global institutional players from investing in the local build-to-rent sector.
Treasurer Scott Morrison released draft legislation in September last year that prevented foreign institutional investors receiving favourable tax treatment for residential property, unless it is used for affordable housing managed by a registered community housing provider. No update was offered in last week’s federal partner.
A JLL survey last year found that when it comes to residential property as a percentage of institutional real estate portfolios, Australia had 0% compared to 25% in the United States.
Although the US multi-family sector is more widely known, the Netherlands and Switzerland lead the world with 46% and 47%, respectively.
UBS Asset Management and Grocon’s 1,200-home Commonwealth Games athletes’ village at Parklands on the Gold Coast will be one of the country’s first major build-to-rent projects in operation.
Grocon also paid around $35 million for a Southbank site in Melbourne at 256-266 City Road, with a permit for 410 apartments over 61 levels that it will use for executive-style build-to-rent units.
In Melbourne’s Docklands, Salta Properties is developing a $330 million mixed-use project at 699 La Trobe Street that will include built-to-rent 260 units and a five-star hotel.
Sunmoon had been put to the market two years ago with Mixed Use Commercial/Residential R160 zoning, offering potential for a development of up to 18 levels of hotel suites and apartments.
The site is a short distance from Scarborough beach, which is undergoing a $100 million revitalisation program.
CBRE’s Chloe Mason, Aaron Desange and Ryan McGinnity sold the property on behalf of John Hughan, who had owned the resort since 2006.
Australian Property Journal
