Australian build-to-rent (BTR) specialist Local Residential has acquired a Melbourne project from Ontario Teachers’ Pension Plan and Hines.
The property’s value is estimated at A$370m (€216m) once it is fully leased and operational.
The acquisition is the second South Melbourne site for Local Residential, which is backed by Macquarie Asset Management. It has boosted its pipeline to about 4,000 units with a completion value of A$3.25bn.
Chris Axsentieff, Local Residential’s head of investments, said: “Securing this second South Melbourne site is incredibly exciting, enabling us to deliver 355 additional residences in one of Melbourne’s most connected inner-city precincts.”
Ontario Teachers and Hines jointly bought the site in 2022 for what was their then plan to build up to A$1.5bn of assets in Australia’s BTR sector.
Ontario Teachers and Hines appointed CBRE to handle the negotiation.
Andrew Purdon, regional director, CBRE living sectors executive, said: “Local’s acquisition of the site underscores the strong and sustained investor demand for high-quality build-to-rent development opportunities across Inner Melbourne.
“South Melbourne offers exceptional conditions for BTR, supported by a substantial renter population, world-class public transport connectivity, and a diverse range of local amenities.”
Trent Hobart, CBRE development site specialist, said: “The site was eagerly contested by private and institutional build-to-sell developers, along with developers utilising international capital with a BTR strategy.
“The market was attracted to the site due to its location and the fact that it had a planning permit that was ready for immediate development.”
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