Greystar Real Estate Partners, LLC (Greystar), a global leader in the investment, development and management of high-quality rental housing properties announces the appointment of Icon to build its $500m Build to Rent project located at 15–85 Gladstone Street in South Melbourne’s Fisherman’s Bend precinct. The project, which has recently received planning approval, will comprise 700 apartments across three towers and create 850 sqm of retail space, becoming one of Australia’s largest purpose-built Build to Rent developments. Construction at Gladstone Street will start in July 2022 with completion predicted for 2024.
The development has been designed by Scott Carver architects and provides its residents with over 4,300 sqm of indoor and outdoor communal space designed to foster community connection. The development will house up to 1,500 residents and is intended to play a key role in both the regeneration of the precinct and achieving future population growth targets.
Gladstone Street will be fossil fuel-free and aims to be powered by 100% renewable energy. The building will target a five-star Green Star Design and As-Built certification, and will feature rooftop solar, a recycled water pipe network and electric vehicle charging points. The Gladstone Street project, located in the suburb of South Melbourne, adjacent to the South Melbourne Primary School, is less than a kilometre from Melbourne’s central business district. The development is intended for young families and young urban professionals.
To secure planning approval and evolve the original permitted design to achieve its vision, Greystar worked closely with the Department of Environment, Land, Water and Planning (DELWP), Fisherman’s Bend Taskforce and City of Port Phillip. Fisherman’s Bend is Australia’s largest urban renewal precinct and is set to be home to approximately 80,000 residents, providing employment for up to 80,000 people by 2050. The development is forecast to provide over 1,000 full-time equivalent construction-related jobs, with almost 100 jobs generated upon completion.
“We intend to work with Icon to create the next generation of Build to Rent properties – state-of-the-art developments, in the best strategic locations, built and managed to our global industry-leading standards. Gladstone Street is an exciting addition to our development pipeline in Australia and advances our efforts to make a significant contribution to diversity of choice in housing supply.
“Our vision for the precinct revolves around the scale and rich variety of amenities on offer, which includes wellness and co-working spaces, pet amenities, and sophisticated resident lounges. It is an exciting time in the Build to Rent space in Australia and we look forward to partnering with Icon on a project which takes renting to the next level.”
Chris Key, Managing Director, Australia, Greystar
Greystar operates over $221bn of real estate in 224 markets globally, and since its inception in 1993, has become the largest Build to Rent player in the United States. Greystar manages over 768,000 units/beds and has an institutional investment management platform with over $58.2bn of assets under management, including over $24bn of development assets. In the Australian market, Greystar has been executing its strategy to bring high-quality housing options to a broader spectrum of the rental population. Gladstone Street marks the second development approval to be received by Greystar in Melbourne within the last 12 months, following planning approval for its South Yarra project.
With around $4bn in projects nationally, Icon is one of Australia and New Zealand’s largest construction providers. Icon has over 80 projects ranging in size up to $400m and annual revenues in excess of $1.7bn. Created from the merger of Icon Co and Cockram in 2018, Icon delivers a range of construction services and scale of projects. As well as expanding its work in the Build to Rent space, Icon is increasing its focus on the student accommodation, defence, commercial, and health and education infrastructure sectors.
This project benefits from the Victorian Government’s Build to Rent land tax concessions, which aims to make housing more affordable by increasing the supply of rental properties in the inner and middle-ring suburbs of Melbourne, while ensuring greater security of tenure and stimulating construction activity.
“The team at Icon is excited to embark on this significant opportunity with Greystar in the residential Build to Rent space. In what is set to be one of the largest of its kind in Australia, the development will comprise three towers and a six-storey podium, including 700 apartments, ground-floor retail tenancies and 4,300 sqm of residential amenities. The scale of this project, and the opportunity to work with an experienced operator such as Greystar is particularly appealing for our team. The project will create an inspiring space that provides opportunity for community connection – and brings an entirely new way of living to South Melbourne.”
Evan Byrne, CEO and Managing Director, Icon
