Greystar, the world’s biggest investor in build-to-rent, has continued to double down on the troubled local rental market with the acquisition of two more inner-Melbourne development sites.
The South Carolina-based real estate giant’s purchase of 2556sq m in Johnston Street, Fitzroy, marks its fourth build-to-rent venture in Melbourne and brings to at least 2000 the number of apartments it intends to deliver.
Greystar announced it had also exchanged contracts earlier this year for another Melbourne property of about 9500sq m in Macaulay Road in Kensington, and plans to develop more than 400 residential units with an estimated end value of more than $350 million.
In June this year the US’s biggest apartment operator announced it had appointed Icon to build its $500-million residential project in South Melbourne’s Fishermans Bend precinct. With 700 apartments across three towers plus 850sq m of retail space, that project will become one of Australia’s biggest purpose-built build-to-rent developments.
And about 13 months ago Greystar was given the green light to build its first build-to-rent project—a $500-million, dual tower development—on a “super site” in South Yarra.
Greystar expects to file plans for its latest acquisition—2km north of downtown Melbourne—with the Yarra City Council within months.
“This was a rare opportunity to secure a site suitable for build-to-rent in the heart of Fitzroy,” Greystar Australia managing director Chris Key said.
“It is a highly sought-after neighbourhood for many reasons and until now has remained untapped by the build-to-rent market.
“These latest acquisitions add projects in two key target sub-markets and grow our existing portfolio as we continue to deploy our build-to-rent strategy across Australia’s major cities.”
It’s not known what Greystar paid for its two latest sites, but ready cash is unlikely to have been an issue. Last year Greystar secured $1.3 billion for a new fund to support its strategy.
Just last week Greystar expanded that Australian strategy with the announcement it had purchased five industrial sites in Sydney, Melbourne and Brisbane—staking its claim to a project pipeline with an end value of more than $500 million.
