Local Adds South Melb BtR Scheme to $3bn Portfolio

Build-to-rent platform Local: Residential has expanded its holdings, picking up a 355-home development at South Melbourne.

Local: Residential, touted as Australia’s largest build-to-rent platform, was last year appointed by Development Victoria to deliver the third and final stage of the Fitzroy Gasworks precinct.

Now a part of the platform’s portfolio is 15–37 Bank Street, South Melbourne. With a stabilised asset value of $370 million, it is Local’s second site in the suburb after its 245 Normanby Road project, which is due for completion this year.

Plans for the site were filed by Hines in January 2023.

Local’s pipeline of residential assets now comprises about 4000 units with a stabilised value of $3.25 billion, including 2156 operational units valued at $1.55 billion across the eastern seaboard.

The development is planned for the fringe of the Melbourne CBD in the Domain precinct, surrounded by parklands, including the Royal Botanic Gardens and Albert Park Lake.

The site offers solid transport connectivity, with multiple trams along St Kilda Road providing CBD access in under 20 minutes and the Anzac Metro station connecting to universities and major health institutions in three stops.

The development will offer a mix of studios and one, two and three-bedroom apartments. Ten per cent will be designated as affordable housing.

Its 1100sq m of premium amenities will include co-working spaces, gym and wellness facilities, lifestyle and entertainment areas, a heated pool, rooftop terrace, and pet-friendly facilities.

▲ Renderings of the build-to-rent project planned for the South Melbourne site.

CBRE development site specialists Trent Hobart and David Minty along with the CBRE Living Sectors’ Andrew Purdon and Alex Shaw represented the owner OTPP and Hines in the sale.

Hobart said the site was “contested by private and institutional build-to-sell developers as well as a range of developers utilising international capital with a build-to-rent strategy”. 

“The market was attracted to the site due to its location and the fact that it had a planning permit that was ready for immediate development that was designed by Rothe Lowman architects.”

Purdon said that Local’s acquisition of the site “underscores the strong and sustained investor demand for high‑quality build‑to‑rent development opportunities across Inner Melbourne”.