The $650 million built-to-rent project will be constructed by Australian company Lendlease and Japanese firm Daiwa House
A $650 million build-to-rent (BTR) project at Melbourne Quarter has been announced by Lendlease and Daiwa House. The BTR project marks the second partnership between the two companies, with the first being Claremont Hall residences in Manhattan. The project will be Lendlease’s second BTR project in Australia.
The partnership also marks Daiwa House’s entry into Australia’s BTR market and reflects confidence in Melbourne and the build-to-rent asset class. “Daiwa House’s investment in our build-to-rent project in Melbourne further strengthens the relationship between our two organisations as we bring the best of our shared global expertise to this development opportunity,” said Lendlease Australia CEO, Dale Connor.
“This announcement highlights continuing demand from our Japanese partners for high quality opportunities across our global project pipeline – in total, we’ve now secured Japanese investment in projects totalling approximately $11 billion in end development value. It also represents a major vote of confidence in Australia’s property market.”
Daiwa House is Japan’s largest home builder and one of Japan’s largest property developers, with over six decades of experience in single-family housing, rental housing, commercial facilities, logistics and condominiums, with a particular focus on carbon neutrality across all developments. “We are committed to broadening our development footprint in Australia and welcome the opportunity to further expand our global relationship with Lendlease to deliver to the Melbourne community this quality build-to-rent opportunity,” said Daiwa House Australia CEO, Koji Morishige. “Housing accessibility is front of mind for Daiwa House and this build-to-rent opportunity is reflective of our commitment to assist with increasing the supply of quality and well positioned rental accommodation for the residents of Melbourne.”
Located at 646-666 Flinders Street on the southern fringe of Melbourne’s CBD, Lendlease will develop, construct, and act as the investment manager for the BTR development, which has an end value of circa $650 million. Lendlease will retain a 25 per cent interest in the development, which will see 797 residences across 45 storeys added to the Melbourne rental market, including a mix of studio, one, two, and three bedroom apartments.
Among the development amenities: a 25 metre lap pool, bowling alley, karaoke and music studio, co-working space, cinema, fully equipped gym with spa, sauna and steam rooms, virtual sports and games rooms, and a dedicated on-site concierge. Bordered by Collins and Flinders streets, and in close proximity to Southern Cross Station, the build-to-rent development forms the final piece of Lendlease’s Melbourne Quarter precinct. As a modern and sustainable mixed-use precinct, Melbourne Quarter will be home to 14,000 workers and more than 3,800 residents on completion. It will be all-electric and target a 5 Star Green Star Design & As Built v1.3 rating. Construction is due to commence in August 2023, with residents to take occupancy from early 2026.
