Gurner announces build to rent tower in OSK's Melbourne Square, Southbank masterplan
Joint venture partners GURNER™ and Qualitas has announced a partnership with OSK Property to deliver a build to rent residential tower within OSK's booming $2.8 billion Melbourne Square precinct in Melbourne's Southbank.
The OSK Group is a publicly listed developer in Malaysia with over five decades of experience. They will retain an ownership stake in the BTR asset alongside GURNER™ and Qualitas' joint venture group GQ who will develop, manage and operate the BTR tower.
The new BTR tower will be designed by Cox Architecture and will further enhance the mixed-use offering at the Melbourne Square precinct, delivering around 500 residences and extensive communal amenities.
The tower will be another new addition to Melbourne Square, a precinct focused on world-class resident facilities, health and wellness amenities, and a range of apartment options that have so far appealed to a diverse mix of residents.
OSK has completed the first two towers in Melbourne Square, and earlier this year launched BLVD, arguably the most impressive tower to date.
The $2.8 billion Melbourne Square precinct encompasses five towers, a 3,745 sqm public park, full- line Woolworths, childcare and a number of retailers.
In keeping with GQ’s industry leading commitment to sustainability, the tower will feature environmentally sustainable design including 5-Star Green Star certification, an inset energy network and a net-zero energy emissions outcome. With low cost, 100 percent renewable energy available, and an all-electric building, the development is set to be carbon neutral in operation.
Partnering with GQ to develop, manage and operate the BTR tower means OSK Property can convert one of the Melbourne Square towers into a retained asset within its portfolio, an appealing proposition that will see the developer diversify asset classes within a single project.
GQ and OSK Property have strong confidence in the Southbank market. GQ has a separate BTR project under construction on City Road in Southbank, while OSK Property recently completed two transactions, acquiring neighbouring properties totalling 7,800 sqm at 87-117 Queensbridge Street and 190 City Road for a future mixed-use development.
The GQ BTR platform launched in 2021 with three initial seed sites: in Melbourne, the $300 million Beach House in Melbourne’s St Kilda – which is nearing completion ahead of the first residences hitting the market in early 2024 and a $350 million tower at City Road in Southbank, and in Sydney the 61-storey, $450 million project in Hassall Street, Parramatta.
Construction for the Melbourne Square site is due to commence in Q1 2025.
GURNER Group Chief Development Officer Robert Clarke said the team have been watching Melbourne Square for a number of years.
"We are looking forward to contributing first-class rental accommodation to the precinct," Clarke said.
“This joint venture makes a lot of sense for us as it’s a shovel-ready precinct that will deliver much needed rental supply to the market in an area that’s growing and supporting a large population.
“With the current demand for rental stock still at historical highs, we are actively looking at many different ways to add to our portfolio whether that be partnerships, joint ventures or traditional acquisitions."
OSK Property Australia CEO Chong Boon Woon said the joint venture with GQ represents the next evolution of their Australia pipeline.
“Our development philosophy is very much focused on strategic, risk-adjusted decision-making and a quality over quantity approach to individual projects and acquisitions.
“This joint venture with GQ represents the next evolution of our Australian pipeline, allowing us to go where the market is, recognising the under-supply of the rental accommodation in Melbourne, while enhancing the offering at Melbourne Square and maximising the position of our existing portfolio.
“OSK Property has a strong reputation as a high-quality developer in Malaysia, and given the success and proven track record of delivery at Melbourne Square we would like to think the Australian market can see that we are trustworthy and that we do what we say we will.
“We were motivated to seek a joint venture partner after recognising the under-supply of rental accommodation throughout Melbourne – we are looking forward to contributing to high-quality rental options in the city, while providing another architectural landmark building in an amenity-rich precinct."