Build to Rent developer Make Ventures has paid $17.5 million for an industrial site in Melbourne’s inner north-west.
The 3986 square metre plot, 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 BTR project in partnership with designer Assemble.
It would be the consortium’s second complex of this type 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 purchase price and rental are negotiated at the beginning of the contract.
It is expected Make Ventures will start construction at 88-96 Stubbs Street in two years, when the occupier of four decades, Flexible Drive Agencies, vacates.
BTR 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 stock of this type in Richmond, opposite its Victoria Gardens shopping centre.
Grocon recently gained approval for a BTR 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.