AFL stadium deal could spark build-to-rent trend
It’s taken a property deal with the AFL on a plot of land next to Melbourne’s Marvel Stadium to really spark the public imagination about the promise of the country’s build-to-rent sector.
The transaction revealed this week means footy fans could soon be living on the stadium’s doorstep after developer Grocon picked up the site next to the venue in a $67 million deal.
The company, led by Melbourne property scion Daniel Grollo, has quietly emerged as the leader in the new property arena and it has bought up sites around the country to build apartment blocks to rent out units rather than sell them off.
It has two more sites in Melbourne and another two in Sydney under its wing after winning the backing of Singapore’s sovereign wealth fund in the area. But it is keeping its plans under wraps for now.
The AFL deal is just a marker of the wave of new-style towers being built with the projects now being pitched as one of the few areas of property not being torn apart by the coronavirus crisis.
The notion of build-to-rent has been kicked around for several years by developers but they were often bogged down by complaints about investment and tax structures. Now many are simply getting on with it, with Mirvac at the vanguard of listed companies getting into the area.