Mirvac has launched a landmark build-to-rent project in Melbourne in partnership with private developer PDG Corporation.
Part of the $450 million Munro development, the project is sited alongside the $250 million Queen Victoria Market precinct renewal in the city’s CBD. The $333.5 million build-to-rent project will deliver a total of 490 purpose-built residences.
Observing that renting has become a lifestyle choice for a much wider group of people who want to be closer to work, and other lifestyle amenities, Mirvac’s CEO and managing director Susan Lloyd-Hurwitz believes that build-to-rent can revolutionise the rental experience with improved choice, quality and security of tenure.
She added that this emerging market will ease housing affordability issues. Also, entering the sector made good business sense for Mirvac given that build-to-rent represented one of the largest real estate asset classes in the world.
PDG was appointed by Melbourne City Council to develop the Munro precinct as part of the Queen Victoria Market renewal. The build-to-rent project will commence later this year as part of the final stage of the precinct’s development, which will also include a hotel and retail areas. The first stage of the Munro development, which is currently under construction, will include the city’s largest community hub, public parking, affordable housing and childcare.
This is Mirvac’s second build-to-rent project with work on Pavilions – their first in this sector – at the Sydney Olympic Park due for completion late next year.
Notwithstanding the slowdown in the residential build-to-sell segment in Australia, the demand for residential property remains high. The nascent build-to-rent concept will potentially create an opportunity for countercyclical investment in residential property while offering tenants a more stable and secure rental environment.
Image: Mirvac (Artist’s impression)