Property development group Mirvac has acquired a site next to the Queen Victoria Markets in Melbourne for $333.5 million.
The deal includes the acquisition of 490 build-to-rent apartments on a fund through basis, subject to planning and redesign conditions to ensure the building delivers purpose-built apartments.
It follows the construction of Mirvac’s first build-to-rent asset in Australia, located at Sydney Olympic Park, which is due for completion in September 2020 and leasing to commence in June 2020.
Mirvac’s CEO and Managing Director, Susan Lloyd-Hurwitz, said renting has become a lifestyle choice for a much wider group of people who want to be closer to work and other lifestyle amenities.
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“We believe build-to-rent can revolutionise the rental experience with improved choice, quality and security of tenure,” she said.
“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.”