Australian build-to-rent (BTR) specialist Local Residential has acquired a Melbourne project from Ontario Teachers鈥� Pension Plan and .
The property鈥檚 value is estimated at A$370m (鈧�216m) once it is fully leased and operational.
The acquisition is the second South Melbourne site for Local Residential, which is backed by . It has boosted its pipeline to about 4,000 units with a completion value of A$3.25bn.
Chris Axsentieff, Local Residential鈥檚 head of investments, said: 鈥淪ecuring this second South Melbourne site is incredibly exciting, enabling us to deliver 355 additional residences in one of Melbourne鈥檚 most connected inner-city precincts.鈥�
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鈥檚 BTR sector.
Ontario Teachers and Hines appointed to handle the negotiation.
Andrew Purdon, regional director, CBRE living sectors executive, said: 鈥淟ocal鈥檚 acquisition of the site underscores the strong and sustained investor demand for high-quality build-to-rent development opportunities across Inner Melbourne.
鈥淪outh Melbourne offers exceptional conditions for BTR, supported by a substantial renter population, world-class public transport connectivity, and a diverse range of local amenities.鈥�
Trent Hobart, CBRE development site specialist, said: 鈥淭he site was eagerly contested by private and institutional build-to-sell developers, along with developers utilising international capital with a BTR strategy.
鈥淭he 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.鈥�
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