The Victorian government’s build-to-rent land tax concessions have proven attractive to one developer, with a US-based company securing its second substantial construction approval in under 12 months.
Real estate developer and rental housing property management firm Greystar, which is headquartered in Charleston, South Carolina, has recently received approval and appointed the builder Icon to construct a $500 million residential project located at 15-85 Gladstone Street in South Melbourne’s Fishermans Bend precinct.
The firm got the go-ahead on its South Yarra project, which is set to house over 600 apartments and 2,400 square metres of retail and commercial office space, in September of last year. At the time, it was billed as the biggest build-to-rent project in Australia.
Designed by Scott Carver architects, the Gladstone Street project adds to the firm’s ambitious intentions in the Australian market, planning to offer 700 residential apartments across three towers, with 850 square metres of retail space and over 4,300 square metres of indoor and outdoor communal area, upon its slated completion in 2024.
The precinct is slated to be fossil-fuel-free and will be powered by 100 per cent renewable energy, with integrated rooftop solar, a recycled water pipe network, and electric vehicle charging points. The firm is targeting a five-star Green Star Design and As-Built rating.
Greystar’s rental accommodation will be a significant contributor to the City of Port Phillip’s urban renewal plans for Fishermans Bend, which the council intends to transform into a bustling hub home to 80,000 residents with employment opportunities for up to 80,000 people by 2050.
The largest BTR player in the United States, Greystar is supporting both this project and its South Yarra build through its $1.3 billion Greystar Australia Multifamily Venture 1 fund, which it says will ultimately finance the construction of 5,000 new homes for Australian renters.
Chris Key, Greystar Australia’s managing director, said that the progress on the company’s Gladstone Street facility heralded “an exciting time in the build-to-rent space in Australia”.
He outlined the company’s strategy for ensuring their latest projects were future-ready.
“We intend to work with Icon to create the next generation of build to rent properties – state-of-the-art developments, in the best strategic locations, built and managed to our global industry-leading standards.
“Gladstone Street is an exciting addition to our development pipeline in Australia and advances our efforts to make a significant contribution to diversity of choice in housing supply. Our vision for the precinct revolves around the scale and rich variety of amenities on offer, which includes wellness and co-working spaces, pet amenities, and sophisticated resident lounges.”
Evan Byrne, Icon’s chief executive and managing director, said the Gladstone Street housing would introduce something of a new standard for the area.
“The project will create an inspiring space that provides opportunity for community connection – and brings an entirely new way of living to South Melbourne,” Mr Byrne said.
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Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.