This article is from the Australian Property Journal archive
INVESTA and Oxford have commenced construction on more than 1,000 inner Melbourne build-to-rent apartments across two projects as momentum gathers in the nascent sector.
Investa’s build-to-rent platform, Indi, has started work on Indi Footscray, in the inner western suburbs, and Indi Southbank on the edge of the CBD, totalling almost 1,050 units.
The projects are part of Oxford’s build-to-rent portfolio.
Since launching the Indi platform in June of 2021, the venture has amassed a portfolio of 1,370 apartments under construction with an on-completion value of approximately $1.2 billion. This includes its flagship Sydney asset, Indi Sydney City, where construction is underway and due for completion in 2024.
Indi Footscray at 3 McNab Avenue will comprise 702 units across three buildings perched adjacent to Footscray train station and close to Footscray Market. It will offer a mix of one, two and three-bedroom apartments incorporating contemporary design, high-quality finishes and premium communal facilities.
Residents will have access to a range of shared spaces including a rooftop barbecue and dining area, co-working spaces, a fitness centre, a centrally located public piazza anchored by cafes and restaurants and incorporates high ESG design and operating standards. The venture has partnered with Roberts Co as builder.
At 132 Kavanagh Street in Southbank, 434 apartments will be delivered within the new Boyd Park, including 40 affordable rental dwellings earmarked for key workers. Residents will have access to an outdoor heated swimming pool, views of the CBD skyline, full-size gym and several multipurpose fitness room, games rooms, outdoor barbecue areas, co-working spaces, and a podcast room.
Investa has partnered with PDG Corporation to deliver the asset on a fund-through basis.
“Investa’s BTR assets will enable residents to live in great places close to where they work,study and socialise and will provide residents with a superior way of renting and importantly, security and flexibility of tenure,” Mark Tait, head of developments said:
CEO Peter Menegazzo said there is an undersupply of institutionally owned and managed residential apartment rentals in Australia this, combined with strong demand drivers and fundamentals, positions the sector as a compelling investment opportunity.
Indi is targeting a portfolio of about 5,000 build-to-rent units in Australia.
Melbourne is home to most of Australia’s build-to-rent projects. Developer Samma Property Group has just been given the green light for a $250 million tower on the Yarra River, next to the Bolte Bridge in Docklands, slated to be part of a $1.7 billion build-to-rent portfolio.
Other Major institutional players and developers active in the Melbourne market include Greystar and Mirvac, as well as Gurner, Altis, Hines, and Sentinel and PGGM. Mirvac’s $355 million build-to-rent project overlooking Queen Victoria Market on the city’s northern edge has just opened.
Australia’s build-to-rent sector is expected to mature into a $9.6 billion market by 2027, and while federal government tax arrangements still present challenges, the Victoria and NSW governments have introduced concessions.
