Mirvac Snaps Up Spencer St Site for Build to Rent

ASX-listed Mirvac plans to grow their build-to-rent portfolio after buying 7-23 Spencer Street for $200 million.

The Flinders West acquisition, made just prior to Christmas, is in line with Mirvac's strategy to grow its build-to-rent portfolio in Australia.

Mirvac will transform the former Melbourne convention centre into two towers—a 40,000sq m office tower and 430 build-to-rent apartments.

The site was last purchased in 2016 by Chinese developer Nuway Wy for $97 million who had approval for 1100 apartments across three towers. Century Group Australia planned to spend $800 million on the development and named operator St. Regis Hotels & Resorts in August.

Mirvac’s chief executive Susan Lloyd-Hurwitz said the deal was a unique opportunity to secure a large development site that will strengthen both its commercial and build-to-rent portfolios.

“This site provides us with an opportunity to add to our high-quality Melbourne office portfolio and grow our burgeoning build-to-rent portfolio in a location supported by strong transport links, ongoing infrastructure investment and favourable demographics,” Lloyd-Hurwitz said.

“The increasing demand for rental properties in Melbourne’s CBD also makes this a perfect location for our next build-to-rent project.”

Mirvac launched the Australian build-to-rent club in 2018 with Clean Energy Finance Corporation to address housing affordability and already has projects in Sydney and Melbourne.

December also saw Mirvac and its consortium with John Holland given the green light to deliver the $800 million Waterloo Metro Quarter development in collaboration with the NSW government.

The Spencer Street purchase will be paid in instalments with settlement expected to occur between March 2020 and August 2021.