Local Partners MONNO for $350m Docklands BtR Tower

Local Residential has secured a partnership with developer MONNO to deliver a $350-million build-to-rent tower in Melbourne’s Docklands, marking one of the first major metropolitan construction commencements for 2025. The 32-storey development at 111 Lorimer Street will comprise 391 apartments and is scheduled for completion in late 2027. The Docklands site is near the future University of Melbourne Fishermans Bend campus, the Yarra River and South Wharf transport connections. MONNO managing director Geno Hubay said the project set “a new benchmark in our delivery of purpose-designed build-to-rent assets” and reinforced both companies’ commitment to “long-term institutional outcomes, renter experience and ESG excellence”. Local co-chief executive Dan McLennan said the partnership focused on “delivering high-quality renter-centric homes that address critical undersupply whilst aligning with the needs of institutional capital”. The collaboration is a departure from Local's previous development arrangements, which McLennan said were typically “turnkey-style transactions where Local is providing a capital pre-sale solution for a project”. McLennan told The Urban Developer the MONNO partnership “differs in that Local is partnering in a joint venture with a developer and landowner to realise the project together”. “We think it’s a great model for us to partner with landowners and developers who have the capital and appetite to develop build-to-rent assets and see the benefit in doing so alongside a specialist operator who also has skin in the game.” The development targets an 8.5-star NatHERS rating, which would be the highest sustainability credentials for any build-to-rent asset nationally. ▲ A rendering of the Rothelowman-designed tower at 111 Lorimer Street, comprising 391 apartments across 32 storeys in Melbourne's Docklands. McLennan said sustainability features delivered “meaningful value for our tenants in reduced energy costs” and were something Local would “always strive to maximise”. Operating as Climate Active Carbon Neutral through all-electric, renewable-powered systems, the tower is modelled to deliver 40 per cent utilities cost savings for residents compared to typical gas-powered apartments. With construction costs and funding challenges affecting residential development, Local said it was adamant about maintaining project viability while achieving premium sustainability ratings such as the 8.5 Star NatHERS target. “The funding is there for viable projects, so the real focus is on ensuring projects are viable,” McLennan said. “To this end we maintain a laser focus on ensuring that our projects only feature inclusions that deliver real value for our customers and investors.” Beyond residential accommodation, the project includes five levels of commercial and office space alongside premium amenities including an indoor pool, gymnasium and co-working hubs. Ten per cent of homes are allocated as impact housing. ▲ Hayball Architect's rendering of Local Residential's Kensington project. The partnership expands Local’s portfolio to 3246 apartments under management for a combined value of $2.46 billion. This follows the company’s acquisition of Smith Collective on the Gold Coast, which established Local as Australia’s largest build-to-rent platform. The Macquarie Asset Management-backed developer-operator, which completed its $380-million Kensington project in December, also acquired Samma’s Southbank site for a $270-million development earlier this year. The Southbank project at 65 Haig Street would deliver 312 residences, with construction scheduled to begin in the third quarter of 2025. “The Sydney market is [also] a clear focus for our growth as a platform, and pleasingly, there are a number of high-quality opportunities we are pursuing in that market,” McLennan said. The partnership reflects what McLennan described as “strong developer confidence in the build-to-rent sector” and “brings another fresh and focused structure to the sector—at a time when global capital favours the living sector, and the Australian market in particular”.

Local Partners MONNO for $350m Docklands BtR Tower

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