Hines plans build-to-rent project in North Melbourne

Hines will develop more than 220 high quality units with future residents to benefit from being close to the central business district and the green open spaces surrounding the site.

US real estate giant Hines has unveiled plans for its second built-to-rent development, in inner city North Melbourne, as the Victorian capital locks in its status as the leader in the emerging field.

Thousands of the new style of apartments are being rolled out across the city and suburbs as a generation of long-term renters who are locked out of the housing market demands alternatives.

The site at 36-58 Macaulay Road was put together in 2019 by developers CDL, Lechte Corp and Crema but they switched from plans to launch a twin-tower apartment project. They paid $20.35m for the property and Hines forked out about $30m in a sign of rising values.

It will develop more than 220 high quality units with future residents to benefit from being close to the central business district and the green open spaces surrounding the site.

The play follows from Hines’ first acquisition 10 Ballarat Street, Brunswick, with the purchase signalling its appetite to increase its scale in the Australian sector.

The US company sports a wealth of global experience in the sector and is looking to bring its international knowledge and track record in the sector to give Australian tenants a world-class living experience.

“We are very excited to continue to expand our efforts in the BTR space with our second BTR project in Australia,” said country head of Australia at Hines, David Warneford.

“Hines has deep global expertise in residential and BTR development, operations and investment management, with substantial platforms in the US and Europe,” he said.

Locally, the business is led by Sam Bisla, Hines’ head of living, who is driving its expansion.

JLL’s Josh Rutman, Nick Peden, David Hill and Mingxuan Li and Colliers’ Trent Hobart and Jozef Dickinson brokered the sale.

“Melbourne’s residential affordability issues are well documented and sites capable of accommodating more than 200 units in key affluent residential pockets are rare, so it’s no surprise that sophisticated groups like Hines are actively seeking to acquire well located inner-city landholdings like this for build-to-rent projects,” said JLL’s executive director of capital markets, Victoria, Josh Rutman.

The project was Mr Bisla’s second acquisition since joining Hines last year as the new head of living.

Tasked with leading the establishment of the new platform, the deal is another step up as competition intensifies as projects start coming out of the ground.

“Australian BTR is a key strategic market for growth for our firm and investors globally. We are thrilled to be growing our platform in the region,” Mr Bisla said.