The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
8
print
Print
ResidentialLindsay SaundersFri 26 May 23

MaxCap Assembles $95m ‘Buy-to-Rent-to-Sell’ Apartment Portfolio

MaxCap has revealed a big move in its so-called “buy-to-rent-to-sell” strategy, assembling a $95-million portfolio of 125 recently completed apartments across four buildings.

The apartments, all in Melbourne, would be offered to rent “and, later in the cycle, for sale”, MaxCap head of direct investment Simon Hulett said.

The buildings from which the apartments have been acquired are Sapphire by the Gardens, 308 Exhibition Street; Premier Tower, 138 Spencer Street; St Boulevard, 601 St Kilda Road; and Australia 108, 70 Southbank Boulevard.

Hulett said that MaxCap had formed a partnership with Melbourne property services business and sales agency Colliers Residential Victoria to pick the apartments.

“Our ‘buy-to-rent-to-sell’ strategy … offers a low-risk strategy with diversification, income and liquidity that appeals to our investors—different to residual stock lending and different to build-to-rent investment,” Hulett said.

“We adopted a rigorous and highly selective approach in identifying these 125 one and two-bedroom units across four new buildings.

“We are bullish about the basic supply and demand fundamentals of the Melbourne residential market.

null
▲ Apartments in Sapphire by the Gardens (pictured) and Australia 108 (main image) are among those MaxCap has compiled for the strategy.

“Further, by eliminating construction risk and acquiring completed stock, we are able to enter the tightly held rental market immediately and are able to take immediate advantage of both income growth and capital growth.”

MaxCap executive director Brae Sokolski said Melbourne was experiencing a significant housing shortage. This is primarily because the supply of new projects was being hindered by rising costs and a decrease in pre-sale investors.

“Residential apartment completions for the city are forecast at 46 per cent below the five-year average for the next five years.

“When overlaid with vacancy rates of less than 1 per cent and forecast population growth and shrinking average household sizes driving increased demand over coming years, this is significantly concerning.”

Sokolski said he believed the ‘build-to-rent-sell’ approach could assist in solving some of Melbourne’s future supply requirements given demographic projections have the greater city heading for 6 million people by 2030 and surpassing Sydney in size.

ResidentialBuild-to-RentAustraliado not useMelbourneReal EstateDeal
AUTHOR
Lindsay Saunders
The Urban Developer - News Editor
More articles by this author
linkedin icon
ADVERTISEMENT
TOP STORIES
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
View All >
Bridgewater Gagebrook Brighton Derwent River from Granton
Planning

Scheme to Unlock 362 Lots in Tasmania Revealed

Leon Della Bosca
Genton Architects' rendering of the East Village Sunbury project by Birchmore and IDA on Lancefield Road in Sunbury, Victoria.
Retail

Retail Centre Moves Ahead as Sunbury Prepares for Growth

Marisa Wikramanayake
Development

Brisbane Needs Big, Hairy, Audacious Goals and a Plan: Peter Edwards

Taryn Paris
The architect of the 2032 Games is running the rule over a new growth corridor in the centre of Brisbane...
LATEST
Bridgewater Gagebrook Brighton Derwent River from Granton
Planning

Scheme to Unlock 362 Lots in Tasmania Revealed

Leon Della Bosca
3 Min
Genton Architects' rendering of the East Village Sunbury project by Birchmore and IDA on Lancefield Road in Sunbury, Victoria.
Retail

Retail Centre Moves Ahead as Sunbury Prepares for Growth

Marisa Wikramanayake
2 Min
Development

Brisbane Needs Big, Hairy, Audacious Goals and a Plan: Peter Edwards

Taryn Paris
3 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/maxcap-build-to-rent-to-sell-melbourne