Japanese giant spends $23m for Melbourne BTR site
Osaka based Kanden Realty & Developments with Novus has snapped up a prominent corner site for a build to rent project.
The Dalston Bakery and a neighbouring property, all up covering 1683 square metres between 405-421 Spencer Street, is costing c$23 million ex-GST, sources say.
Peter Lofitis was the seller, his father paying $16.55m between 2015 and 2016, later winning permission for a 20 storey build to sell apartment project, penned by Plus Architecture.
Earlier this year we reported the executive obtained a permit reworking an approved shell as a build to rent investment with 147 dwellings.
Novus backs Victoria again
Novus, a build to rent developer established in 2021 by former Mirvac executives Adam Hirst and Jason Goldsworthy, backed by David Southon’s Aliro Group, intends to hold c10,000 dwellings.
It is planning 190 apartments with Kanden at 405-421 Spencer St, on the north west corner of Batman.
The end value, it speculates, will circle $200m.
Completion is expected 2027.
Elsewhere in Melbourne, Novus recently completed a BTR investment in Sturt St, Southbank, backed by London-based investment house M&G Real Estate.
Two years ago meanwhile Novus bought an 1864 sqm parcel for an asset of this type, in Bowen St, South Melbourne.
It also holds a North Melbourne block on Laurens St.
In Sydney, its book includes projects in, amongst other places, Chatswood, Epping and Parramatta.
Established in 1957, Kanden is the real estate investment arm of Kansai Electric Power Group or KEPCO.
Cushman & Wakefield’s Daniel Wolman and Oliver Hay with Jones Real Estate’s Paul Jones and Luke Peric marketed 405-421 Spencer St.
“We’re proud to have strategically repositioned this property as a build to rent asset and delivered it to Novus,” Mr Lofitis said.
“With early works and demolition well progressed, Novus is well positioned to hit the ground running,” he added.
“We look forward to seeing it realised as a landmark project of unrepeatable scale in West Melbourne,” according to the executive.
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