Cromwell Property Group is to embark on a A$350m (€216.5m) mixed-use development which will include its first move into the Australian built-to-rent (BTR) market.

Cromwell said it was seeking approval to develop a 55-storey mixed-use development, comprising office, hotel and apartment living at 700 Collins Street in Melbourne’s Dockland district.

The group plans to include up to 265 apartments, which will be offered for rental under the BTR model.

Cromwell’s head of property, Bobby Binning, described the project as “another exciting” value-add development opportunity for Cromwell.

“There are a number of similar value-add opportunities being considered in the portfolio, he said.

“This project follows hot on the heels of approval for a A$75m development approval at Chatswood, on Sydney’s North Shore.”

Binning said these projects would be funded by proceeds from its asset recycling initiatives and recent capital raising on the public market and a debt placement on the euromarket.

Cromwell’s announcement comes soon after reports that Blackstone has inked an agreement with a Melbourne-based developer, Beck Property Group, to build a BTR project with an estimated value of A$300m in the Melbourne suburb of Caulfield.

The project, subject to approval, will include more than 400 apartments as part of a multi-stage A$1.5bn Caulfield Village mixed-use project.