PDG Corporation has adjusted its plans for a 42-storey tower at Southbank, entering into a new agreement to take advantage of Melbourne’s growing built-to-rent market.
PDG will now partner with Oxford Properties and Indi to develop the 434-apartment tower, including 40 for key workers, at 132 Kavanagh Street, Southbank.
Oxford will eventually be the owner, Indi will manager the tower and PDG will continue as development manager of the project.
The property is part of the former J H Boyd Girls School site—this latest plan builds on the original 32-story tower plans for 176 apartments and 40 affordable housing units.
At the time of purchasing the property for $16.5 million from the City of Melbourne in 2019, managing director Vince Giuliano said a build-to-rent component of the tower “hadn’t been ruled out”.
The latest plans, designed by DKO architects, were approved in late 2020 and included 920sq m of public space next to the Boyd Community Hub.
Indi is a relatively new player in the build-to-rent game and was launched by Investa in May as part of plans to create a 5000-apartment portfolio that already includes Ind Sydney City and Indi at Footscray, both under construction.
Investa chief investment officer Penny Ransom said this acquisition brought the management platform’s pipeline to 1370 apartments.
“We have ambitious growth plans for Indi and are delighted to have secured such a fantastic development site, in one of the most convenient, liveable locations in Melbourne,” Ransom said.
Oxford head of Australia Alec Harper said growing their exposure to the Australian build-to-rent sector represented one of Oxford’s highest-conviction investment strategies.
“A lack of housing choice is one of the most pressing issues facing major cities across the globe,” Harper said.
“We are combining our capital and global experience of investing in, growing and delivering build-to-rent businesses and development projects to create new supply and improve housing choice for Australians.
“Today’s transaction further delivers on the collective vision of Oxford, Investa and Indi to transform the experience of renting a home in Australia.”