UEM sells maiden BTR project on funds-through basis
UEM Sunrise has sold its maiden build to rent project – on busy Hoddle Street in Melbourne’s inner east – on a funds-through basis.
The property arm of UEM Group, a wholly-owned subsidiary of Khazanah Nasional Berhad – the Malaysian government’s sovereign wealth fund – is reaping $315 million from the deal.
Kio Investment Management is the buyer, taking ownership upon completion.
Also this week we reported Stockland sold an Industrial Outdoor Storge investment in Brisbane.
Rundown site to be developed at last
UEM paid $43m in 2020 for 21-53 Hoddle Street, Collingwood, at the Abbotsford and East Melbourne border.
Covering 5390 square metres at the south west corner of Langridge St, it was for years owned by Jowett Properties and contained modern car showrooms.
A permit was later approved to replace it with 407 apartments in two towers, the tallest, 23 levels.
The project was expected to become Collingwood’s first purpose-built institutional build-to-rent development (continues below).
The Kio deal comes three years since we reported a funds-through agreement with US residential giant Greystar – which didn’t proceed.
CBRE’s Trent Hobart was the agent.
Kio forms partnership
Kio was established by global private equity firm Warburg Pincus and Australian residential specialist Sam Bisla.
The Collingwood project will also contain retail space and a new town square connecting Hoddle, Langridge and Islington streets.
Construction is expected to start next year.
This pocket of the suburb is less than two kilometres from the CBD.
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