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Property group Mirvac (ASX: MGR) is making strides in the build-to-rent apartment space after entering an agreement with developer PDG to acquire 490 completed units in the Munro development at Melbourne's Queen Victoria Market (QVM).
The move will cost Mirvac $333.5 million, with the agreement subject to conditions such as planning and redesign to ensure the building delivers purpose-built, build-to-rent product.
The expansion follows construction of the group's first purpose-built build-to-rent asset in Australia, located at Sydney Olympic Park and due for completion in September 2020.
Mirvac CEO Susan Lloyd-Hurwitz says renting has become a lifestyle choice for a much wider group of people who want to be closer to work.
"We believe build-to-rent can revolutionise the rental experience with improved choice, quality and security of tenure," she says.
"Build-to-rent is one of the largest real estate asset classes in the world and entering into this asset class makes good business sense for Mirvac.
"It will deliver a secure and valuable revenue stream, as well as presenting us with a new and growing customer base. We are excited to drive the establishment of the build-to-rent sector in Australia, for which we see enormous potential over time."
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