Frasers $300m Brisbane Build-to-Rent Tower Hits Market

A $300-million tower with government-subsidised apartments will be the next litmus test for Australia’s evolving build-to-rent sector, as Thai-owned Frasers Property Australia puts its Brunswick & Co development on the block.

The 25-storey complex is one of the most substantial offerings in the build-to-rent class, which has gained traction among institutional investors seeking alternatives to traditional commercial assets.

The 366-apartment complex at Brisbane’s Fortitude Valley was designed by COX Architecture and is under construction by Hutchinson Builders. It is scheduled for completion in early 2026.

Brunswick & Co was one of two inaugural projects announced under the Queensland Build-to-Rent Pilot Project in October 2020, alongside Mirvac’s LIV Anura development at Newstead. 

The pilot project was launched with a $70-million government commitment to stimulate purpose-built rental developments within 10km of Brisbane’s CBD.

Developers receive subsidies to offer apartments at discounted rents, addressing housing affordability while establishing the sector locally.

The state aimed to deliver about 750 apartments across both sites, with up to 240 homes tagged as affordable housing.

At the time of the project launch, Property Council Queensland executive director Chris Mountford said the initiative was “a win-win for the property industry and Queensland renters”.

“This is a very welcome step towards creating a new way of delivering housing options for Queenslanders that will deliver high-quality rental accommodation and provide greater security of tenure,” Mountford said.

The Brunswick & Co partnership arrangement will remain in place after the sale, with 144 of the 366 apartments designated for discounted rentals through state subsidies.

Frasers Property Australia chief executive Cameron Leggatt said the divestment was “consistent with our capital recycling efforts, we are looking to reinvest in new projects where we can leverage our mixed-use expertise in the core eastern seaboard markets”.

▲ Brunswick & Co was tabbed as Queensland’s first true high-density build-to-rent development.

The project creates what COX Architects described as a “connected vertical village”.

The ground-floor retail and cafe-integrated lobby “bring Brunswick Street’s energy inside”, the architects said, while the level 25 rooftop is a “subtropical retreat overlooking Brisbane’s skyline”.

“It’s akin to the World’s Friendliest Hotel,” a Frasers statement said.

Resident amenities spanning 1900sq m would include a resort-style pool, dog park, co-working spaces, fitness studio, cinema room, library, podcasting areas and games zones.

CBRE will manage the sale process.

Industry analysts project significant growth for the build-to-rent sector, with CBRE forecasting that institutional build-to-rent developments would constitute 22 per cent of new apartment supply by 2029, which would be about 11,000 units annually.

The Brunswick & Co offering follows other notable transactions in Brisbane’s build-to-rent market.

Last year, US investment giant Hines partnered with Ontario Teachers’ Pension Plan to acquire from ADCO Group two build-to-rent blocks, comprising 354 units, for about $350 million.

Earlier, US private equity firm Blackstone purchased The Lotus Tower at Kangaroo Point from R&F Property Group in 2021, converting it to rental accommodation under its Realm brand.

▲ “No specific time frame” for the next stage of ­development on Frasers’ Newstead project.

While Frasers advances with the Brunswick & Co divestment, the company faces challenges elsewhere in its Brisbane portfolio.

A proposed 141-home build-to-sell project in nearby Newstead was under review in February 2024 due to construction sector pressures.

“Extremely challenging conditions, including lack of contractor availability/capacity, trade/supplier insolvency risks and skilled labour shortages are impacting progress,” a Frasers spokesperson told media.

The Rothelowman-designed project received approval for 131 apartments, including seven penthouses, across 14 levels, along with 10 premium three-storey terrace homes.

The development would feature “a triple height public plaza and two eatery opportunities on the ground floor to be accessible to all”.

Despite these plans, Frasers confirmed there is “no specific time frame” for the next stage of development at the site.

However, the company said it was moving ahead with its masterplanned community, The Quarry, at Keperra.

The Brunswick & Co project broke ground in 2021 as Frasers’ first national build-to-rent development.

“We’re proud of our work in blending our residential, retail and hospitality expertise to create this new benchmark in the emerging build-to-rent sector in Australia,” Leggatt said.