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Property giant Lendlease (ASX: LLC) has joined forces with Canadian investor QuadReal Property Group to deliver its first built-to-rent (BTR) development in Australia - 37-level tower to be located at Brisbane’s showgrounds.
Lendlease, which has a $28 billion BTR pipeline and has delivered more than 2,600 apartments in the sector globally, is set to begin construction of the project early this year with completion scheduled for 2025.
The partners have teamed up to create a platform for BTR projects across Australia where Lendlease says it will bring its global experience to the emerging sector.
Lendlease is currently planning to deliver 1,500 residential-for-rent apartments in in Chicago, New York and London, but has so far resisted a move into the sector in Australia.
The partnership’s plans for Brisbane will bring to the market 443 build-to-rent units in a mix of studio, one-, two- and three-bedroom apartments over 37 levels.
The project is planned for a corner site in Fortitude Valley at 498 St Pauls Terrace, with frontage to Exhibition Street within the Royal National Association (RNA) showgrounds. The site forms part of Lendlease's development holdings in the showgrounds.
“We see enormous potential in the emerging build-to-rent sector in Australia with institutional investors attracted to high-quality residential real estate for its resilient income profile,” says Dale Connor, the CEO of Lendlease Australia.
“In the Australian market, we believe there’s strong demand for long-term, premium rentals in quality locations. Our partnership with QuadReal will bring the best of our shared global experience and capability to deliver one of the finest examples in Australia.”
QuadReal also has extensive global experience in the BTR sector, with 2,000 units of purpose-built rentals under construction, adding to a portfolio of more than 10,000 units in Canada alone.
QuadReal’s total portfolio of managed and developed BTR projects comprises 60,000 residential units globally.
The Vancouver-based group, which broke ground on a 37-level project for 1,000 renters in Toronto last November, currently has more than $70 billion in assets under management.
“The residential build-to-rent sector has been one of QuadReal’s strongest global convictions for some time now, given its resiliency through economic cycles and the community benefit of the commitment to increase the places for people to live,” says Peter Kim, the managing director of QuadReal Asia.
“We are excited to be investing in our first build-to-rent project in Australia with Lendlease, a partner with whom we share, amongst other commitments, a fundamental desire to serve our residents and fiduciary responsibility to all our stakeholders.”
The Brisbane development will offer residents access to premium amenities and communal spaces, including a 25-metre lap pool with beach edge, podcast and music recording studios, a barbecue pavilion, fully equipped gym, co-working facilities, outdoor spa retreat, dog wash facilities, a yoga room and resident lounges.
The development, which will target a 5 Star Green Star rating, will also provide dedicated on-site service teams for residents with a 24-hour concierge service.
Lendlease, which has been relatively slow to the BTR sector in Australia, says it is actively pursuing other key build-to-rent opportunities in Australia’s capital cities.
Local competitor Mirvac Group (ASX: MGR) currently has a pipeline of more than $1 billion BTR projects either under way or completed in Brisbane and Melbourne.
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