Hines joins Brunswick build-to-rent push
Global investment manager Hines has paid $16.5 million for its first site in Brunswick.
Set six kilometres from the centre of Melbourne, Mirvac and Milieu Property are currently developing a nearby BTR project on Albert Street with more than 500 rental apartments.
Hines plans to develop a 250-unit BTR apartment complex at the 4247-square metre site at 10 Ballarat Street.
It will have an end value of $250 million.
Sam Bisla, who heads Hines new BTR and co-living business in Australia, said the asset class would deliver "defensive, stable cash flow" for investors.
The warehouse site, leased to Bell Plaster Supplies, sold through Colliers with a permit for an eight-level building of 163 apartments designed by Bruce Henderson Architects.
It is expected planning authorities will grant extra capacity for BTR.
Build to Rent refers to a residential development in which all apartments are owned by the developer and leased out to tenants, as opposed to the build-to-sell model.
The site last sold for $12 million in 2017.
Mirvac and joint venture partner Milieu have a late 2024 scheduled completion date for its a one-hectare site in Brunswick.
Mirvac has estimated the project would cost $172 million to build.
Assemble Futures are currently marketing their take on build-to-rent (Rent-Save-Buy) just a few doors down from the recent sale.
Their 4 Ballarat Street project, with design by Fieldwork Architects and landscape design by Rush Wright, places an emphasis on providing a seamless transition to the natural environment, with each apartment running on 100% renewable energy.
The spacious outdoor areas and floor-to-ceiling glazing provide plenty of light to fill each living space and cross-flow ventilation.
