Private developer Pellicano has broken ground on its latest build-to-rent project, this time in central Brisbane.
The SJB-designed project, in the inner-north suburb Bowen Hills, features 77 apartments and is due for completion in late 2022.
Pellicano will retain ownership of the project under its Pellicano Living banner.
Residents will have access to high-end amenities including hotel-style service, parcel management, dry cleaning, housekeeping, handyman services, bike rentals, car sharing and regular community events.
The $40-plus million project, dubbed Perry House, continues Pellicano’s recent move away from build-to-sell towards a long-hold rental asset as the build-to-rent model gains momentum in the housing sector.
It is familiar territory for the company, which in the early 1970s built a collection of 24 townhomes it still owns and manages called Clayton House in Victoria.
Nando Pellicano, the managing director of the family-owned company, said the continued investment in the nascent sector made sense for the current market conditions.
“We have a long-standing interest in build-to-rent, which is an intrinsic part of our past and future,” Pellicano said.
“We are always working to redefine our offering; we conduct real-time research among our current members, which allows us to continually improve and refine our future projects, such as Perry House.”
Perry House, Pellicano’s third project to being construction in the past six months, takes the developer’s current build-to-rent pipeline past $170 million.
“In the past six months we’ve announced three additions to our growing build-to-rent pipeline, which signals our continued confidence in the sector and the value we place on these assets,” Pellicano said.
The developer’s other build-to-rent projects include 170 residences in its $85-million Stanley House project in South City Square, Woolloongabba, and 70 residences in a $46-million project in Brunswick, called Solarino House.
Pellicano now manages 600 residences across seven projects with more than 900 residents renting through the company.
The developer has a future pipeline of more than 1500 apartments on existing land holdings.
The Australian arm of Singaporean property giant Frasers Property is also forging ahead with its first Australian build-to-rent project in Brisbane.
Frasers Property Australia will develop 354 apartments on a 2000sq m site at 210 Brunswick Street in Fortitude Valley after successfully bidding on a $200-million pilot development offered by the Queensland government.
Construction of the 25-level tower is due to begin later this year.