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Works commence on Melbourne Quarter build-to-rent development

Works commence on Melbourne Quarter build-to-rent development

Construction for the build-to-rent apartment development at Melbourne Quarter has officially commenced, marked by a sod-turning event held yesterday.

Being delivered in partnership by Lendlease and Daiwa House Australia, the 797-build-to-rent apartment building is located at the southern edge of Melbourne’s CBD at 646-666 Flinders Street.

With a fully-leased estimated end value of $650 million, this project represents Lendlease’s inaugural venture into the Melbourne build-to-rent (BTR) market and Daiwa House’s first in Australia. Both companies leverage their combined international expertise to contribute to this emerging asset class locally.

Koji Morishige, CEO of Daiwa House Australia, said once complete, the development will be more than a place of residence. “Today’s sod-turn event marks a huge milestone in our commitment to deliver to the city of Melbourne this build-to-rent opportunity in such a prime location, the Melbourne Quarter precinct, with our partner Lendlease and the support of the State Government and Development Victoria,” said Morishige. “It will be a place of endless possibilities and choices given the accessibility of residents to a variety of first-class amenities and communal spaces.”

The Melbourne Quarter BTR development aims to provide a high-quality, tenure-secure alternative to the traditional apartment rental market. Offering a range of studio, one, two and three-bedroom apartments over 45 levels, it addresses the growing demand for such housing options in the area.

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Dale Connor, CEO of Lendlease Australia, said there is a strong demand in Australia for long-term, premium rentals in quality locations. He noted the State Government’s recognition of the early potential for BTR in Victoria, making it an attractive destination for developers and investors.

“Our development partnership with Daiwa House, together with the support from our government partners, will bring our shared global BTR capability to the local market, in what is set to be one of the city’s finest examples in our thriving and vibrant Melbourne Quarter precinct,” said Connor.

Residents are anticipated to take occupancy in early 2026 and will have access to an array of amenities and communal spaces. This includes a 25-metre lap pool, bowling alley, karaoke and music studio, co-working space, virtual sports and games rooms, cinema, fully equipped gym with spa, sauna and steam rooms – all overseen by a dedicated onsite concierge.

Lendlease is acting as developer, construction manager and investment manager for the all-electric building, targeting a 5 Star Green Star Design & As Built v1.3 rating.

Niall Cunningham, group head of precincts at Development Victoria, said the partnership with Lendlease has allowed the Victorian Government to facilitate the delivery of the Melbourne Quarter precinct in Docklands.

“Achieving the scale of change we have seen in Docklands over many years requires the support, commitment and investment by a range of partners, including the private sector,” said Cunningham.

“This next residential tower in Melbourne will complement the more than 17,000 residents that already live in Docklands and we congratulate Lendlease for its vision, and the delivery of another high-quality development in the precinct.”

The development marks the final chapter in Lendlease’s Melbourne Quarter, a contemporary and sustainable mixed-use precinct slated to accommodate 14,000 workers and over 3,800 residents upon completion.

Lendlease and Daiwa House have forged a strong global relationship, evidenced by their partnered developments in global gateway cities, which include the 41-storey Claremont Hall with 165 residences in Manhattan, and a recently announced 259-apartment development at Elephant Park in central London.

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