Within two weeks of breaking ground on a $500 million build-to-rent (BTR) project in South Melbourne, multinational Greystar Real Estate Partners has further plans in the segment with the acquisition of 155 Johnston Street, Fitzroy, for an undisclosed sum.
US-headquartered Greystar is set to develop the 2,556sqm site to offer an 'elevated experience for future residents', located 2km from the Melbourne CBD with proximity to the vibrant districts around Brunswick Street and Smith Street.
In collaboration with the Yarra City Council, the Greystar team will look to progress the project through town planning in the coming months.
The Fitzroy deal marks continued momentum for the group as it builds its BTR prospects. Earlier this year, Greystar exchanged contracts for another Melbourne property at 352-400 Macaulay Road in Kensington, with a proposal to develop over 400 BTR residential units with a forecast end value of more than $350 million.
The new development is within the City of Melbourne’s ‘Macaulay Urban Renewal Area’ which intends to transform the precinct from a predominantly industrial area to a thriving mixed-use neighbourhood. Kensington offers excellent transport links with two train stations within a short walk and is close to Arden Station which forms part of the Melbourne Metro project.
The global real estate group notes demand for high-quality rental housing in inner urban areas continues to grow as vacancy rates across Australia’s capital cities reach record lows.
The acquisitions in Fitzroy and Kensington take Greystar's Melbourne pipeline of build-to-rent projects to four, including a project in South Yarra. This pipeline comprises 2,000 BTR units, with an aim to offer greater security of tenure for residents while increasing the supply and diversity of rental properties in key inner-ring suburbs.
"This was a rare opportunity to secure a site suitable for BTR in the heart of Fitzroy. It is a highly sought-after neighbourhood for many reasons and until now has remained untapped by the BTR market," says Greystar managing director for Australia, Chris Key.
"It is undoubtedly a suburb that is full of some of the city’s best retail stores, galleries, bars, pubs, restaurants, and cafés – and we look forward to being able to extend the lifestyle options in the area with an exciting rental proposition for future residents," Key says.
"Similarly, we are hoping to make an impact to housing diversification and choice in Kensington via our Macaulay Road project. Working closely with our neighbours in the precinct, we are striving to optimise the interface between our properties to create excellence in placemaking and deliver over 400 residential apartments that are thoughtfully interwoven into the local area."
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