Macquarie backed build to rent outfit secures another asset
Macquarie backed build to rent outfit Local has bought a major Melbourne asset due for completion in 2027.
The deal for 111 Lorimer Street, Docklands, is with Geno Hubay’s Monno which, via CostaFox, agreed to buy the block in 2017 and, two years ago, won permission to replace it.
A 32 level tower with 391 dwellings is planned.
Resident-only amenity will include a dining room, gym, lounge, place of assembly and podium garden.
Local said about 40 apartments would be allocated for affordable housing.
The project will also contain a six level, c2000 square metre office Local said it would retain as a diversified asset.
Mr Hubay recently appointed Crema to build it.
Monno will also see out other parts of the development and might retain a stake.
The deal comes 18 months since Local, also known as Local:Residential, led by Matt Berg and Dan McLennan acquired major BTR assets under construction at Box Hill and South Melbourne.
In March meanwhile, the group with the Abu Dhabi Investment Authority bought the ex-Commonwealth Games Athlete’s Village in the Gold Coast’s Southport from Grocon for a speculated $600m-plus.
With 1252 dwellings in 19 towers, that deal made Local the country’s biggest BTR provider.
Local builds book
On 4019 sqm at the V-intersection of Boundary Road, the Lorimer St site formed part of the former Subaru Interactive dealership
The project’s end value has been mooted at over $300m.
The land only settled to Monno and Costa Asset Management in May, for $16.06m.
Local might work with it on other projects, Mr Hubay also hold the high-profile Robur Tea House site opposite Crown Casino, approved last year for a c$280m redevelopment with residential and a hotel.
Also this week we reported AXA Investment Managers Alts acquired a West Melbourne build to rent asset on a funds through basis from PDG which will deliver it.
It is the French asset manager’s maiden Melbourne BTR investment.
The group is also behind an asset of this type taking shape in Sydney’s Westmead.
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