French asset manager secures maiden Melbourne BTR complex
AXA Investment Managers Alts has bought a build to rent investment, set for a prominent inner city Melbourne corner.
The seven level asset with 105 dwellings (artist’s impression, top) will be delivered by Vince Giuliano’s PDG which agreed to buy the block, 137-157 Adderley Street, West Melbourne, last June.
The end value is not yet disclosed; assuming units carry an average value of $500,000 – it would just exceed $50m.
The deal comes six years since PDG sold Mirvac an asset of this type on a funds through basis at 101 Therry St, near Queen Victoria Market.
The builder completed that 39 level asset, with 490 dwellings, in 2022.
PDG is also completing a 42 storey BTR investment, with 434 units, as part of Southbank’s Boyd Village complex.
Investa and Oxford Properties backed that project in 2021.
Elsewhere in West Melbourne, PDG last year completed a traditional residential complex, the Gadsden, with 165 apartments.
AXA doubles down on Australian BTR
The Adderley St complex will be AXA Investment Managers Alts maiden Melbourne BTR project.
The Paris based group also bought an investment of this type in Sydney – Farmhouse Rd, Westmead – securing $100m from the Clean Energy Finance Corporation.
With 400 apartments, that asset is being delivered by Deicorp.
The operator, St George Community Housing, is also set to run 137-157 Adderley St, which will have 53 affordable units, targeting essential services workers.
Controlling a portfolio worth c$3.9 billion, it will be that group’s maiden Melbourne BTR project too.
The address is walking distance to hospital and university precincts and Victoria Police’s headquarters, a joint statement announcing the development, said.
Mr Guiliano said as the sector grows, so too will the need to form collaborations with investors.
AXA IM Alts head of Asia Pacific, Antoine Mesnage, added record forecast population growth, limited supply and low vacancy rates drove its decision to back Melbourne BTR.
Elsewhere in Melbourne, it owns a Cremorne office, coincidentally bought on a funds through basis too, in 2018 from Caydon.
More to come.
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