Make Ventures’ latest acquisition at 402 Macaulay Rd, its third in the Kensington community, will sweeten the deal for investors and renters looking for inner-city lifestyle.
Build-to-rent developer Assemble will transform the 7415sq m former confectionery site with a mixed income build-to-rent community, following its parent company Make Ventures’ $30 million acquisition of the site.
Assemble’s growing build-to-rent portfolio, targeted at moderate-income households, has grown to a 650-dwelling, $500 million investment, across 1.4ha of land at Kensington. Assemble has a development pipeline of more than 5000 dwellings nationally.
The latest development will include 400 affordable rental dwellings, with 20 per cent earmarked for social housing to be delivered in partnership with a community housing provider. Managing director Kris Daff said it would provide 2200 construction jobs.
“This latest acquisition in Kensington meets key criteria for institutional investors with a focus on assets that offer scale and access to inner-city locations within key employment areas, heavy rail access and high-quality existing high streets,” Daff said.
The build-to-rent sector is growing traction in the market following the New South Wales and Victorian governments announcing land tax concessions for build to rent projects to boost the construction industry, and a pilot project underway in Queensland.
Assemble managing director Kris Daff said the build-to-rent sector was booming, but called on governments to “attach a minimum requirement for the provision of affordable housing to be delivered by schemes” accessing the tax concession.
“[Build-to-rent] gives the industry much-needed construction activity and provides a new pathway to dwelling supply in the face of a massive shortfall of units via the traditional build-to-sell model,” Daff said.
Kerstin Thompson Architects and Hayball are preparing the planning application for the project, which will span across four buildings.
Construction is expected to begin in 2022.