Build-to-RentClare BurnettFri 19 Jun 26
UEM Sunrise Inks $315m Deal for Collingwood Build-to-Rent Project
Listed Malaysian developer UEM Sunrise has inked a deal for its 407-unit Collingwood build-to-rent project.
The 21-35 Hoddle Street proposal was lodged with the City of Yarra in 2022. At the time the scheme was attached to investor and operator Greystar.
The plan comprised a 23-storey mixed-use tower village on the 5390sq m site UEM Sunrise acquired for $43 million in 2020, formerly home to a multi-level Honda and Nissan dealership.
Now, according to documents filed with the Malaysian stock exchange Bursa Malaysia, parent company UEM Sunrise Berhad has signed a deal with Kio Investment Management.
Kio, founded by Sam Bisla, has taken on the project in a joint venture with US private equity firm Warburg Pincus, a New York-based company, which has more than $100 billion in assets under management.
The $315.4-million agreement was signed with a fund-through structure combining land disposal with a long-term development agreement.
As a result, UEM will serve as the developer and delivery partner, and Kio will become the investor and owner-operator.
UEM said it was a “key step forward” in progressing the development of more than 400 homes in one of the city’s “most supply-constrained rental markets”.
UEM Sunrise brought in Cox Architecture to design the project of 141 one, 170 two and 46 three-bedroom units and four townhouses.
The developer’s $280-million development secured approval in December 2024.
The site is 3.5km from Melbourne CBD. The project will include a public town square with food and drink offerings, retail spaces and landscaping.
UEM Sunrise chief executive Shaharul Farez Hassan said that the Collingwood project was a “key part” of the developer’s growth strategy into Australia, where it is already working on the 342-unit One Oval in Western Australia’s Subiaco.
“[It] reflects our continued commitment to expanding our international development portfolio,” he said in a statement to the Malaysian stock exchange.
“This project also reflects our disciplined approach to partnering as we continue building our presence in Australia’s growing build-to-rent sector.”
Kio founder Sam Bisla said that the company saw “strong long-term fundamentals for institutional rental housing in Australia”.
“We continue to see compelling opportunities to partner with experienced parties to deliver high-quality rental housing in supply-constrained urban markets,” Bisla said.
Early construction works for the Collingwood build-to-rent project are expected to begin by the end of this year. Completion is targeted for 2030.
