Build-to-rent apartment developer Make Ventures has paid $17.5 million for an industrial site in Melbourne’s inner north-west.
The 3986 square metre plot at 88-96 Stubbs Street, Kensington, was only recently gazetted to make way for buildings up to eight storeys high.
It was previously marketed with a planning scheme for an apartment project (artist’s impression, top)
Make Ventures has earmarked the site for a build-to-rent project in partnership with designer Assemble.
It would be the consortium’s second build-to-rent complex in Melbourne – the group is also proposing a tower at nearby 393 Macaulay Road, Kensington, a project part-financially backed by the Alter family’s Pacific Group.
Make Ventures and Assemble will offer owner-occupiers a five-year lease on the proposed apartments – with an opportunity to then buy it.
The apartment purchase price, and the rental, are negotiated at the beginning of the contract.
It is expected Make Ventures will start building on 88-96 Stubbs Street in two years, when the occupier of four decades, Flexible Drive Agencies, vacates.
Build-to-rent is a relatively new concept in Australia. One of the highest profile projects earmarked in Melbourne, is at 695-699 La Trobe Street, Docklands, where Salta is proposing a major tower opposite Marvel Stadium.
Salta is also proposing a build-to-rent project in Richmond, opposite its Victoria Gardens shopping centre.
Grocon recently gained approval for a build-to-rent tower: its proposal for 260 City Road, Southbank, will rise 60 storeys.
Kensington is about four kilometres north-west of the CBD.
The Stubbs Street site was sold off-market by Dawkins Occhuito’s Chris Jones.
Last August, apartment builder United Asia Group, headed by Nicole Chow, paid Vision Australia a speculated $30 million for an 8803 sqm site at 346-350 Macaulay Road, at the north-west corner of Stubbs Street.