Lendlease and Daiwa House Australia announce a partnership that will deliver a new Build to Rent apartment development at Melbourne Quarter. The partnership delivers on the two organisations’ commitment to work together on real estate development opportunities in global gateway cities, having recently partnered to deliver Claremont Hall residences in Manhattan.
The Build to Rent development at Melbourne Quarter will be located at the southern edge of Melbourne’s CBD at 646-666 Flinders Street. It will be the second Build to Rent development to be delivered by Lendlease in Australia as it continues to expand its international capability.
Melbourne Quarter will deliver 797 new homes – a mix of studio, one-, two- and three-bedroom apartments spanning 45 levels. The building will be all-electric and target a 5 Star Green Star Design & As Built v1.3 rating. Construction is due to start in August this year, with residents to take occupancy from early 2026.
“Daiwa House’s investment in our Build to Rent project in Melbourne further strengthens the relationship between our two organisations as we bring the best of our shared global expertise to this development opportunity. This announcement highlights continuing demand from our Japanese partners for high quality opportunities across our global project pipeline – in total, we’ve now secured Japanese investment in projects totalling approximately $11bn in end development value. It also represents a major vote of confidence in Australia’s property market.”
Dale Connor, CEO, Lendlease Australia
Residents will have access to amenities and communal spaces including a 25m lap pool, bowling alley, karaoke and music studio, co-working space, virtual sports and games rooms, cinema, fully equipped gym with spa, sauna and steam rooms, and a dedicated on-site concierge.
Bordered by Collins and Flinders Street and located nearby the Southern Cross Station, the scheme forms the final piece of Lendlease’s Melbourne Quarter precinct.
As a modern and sustainable mixed-use precinct, Melbourne Quarter will be home to 14,000 workers and over 3,800 residents on completion.
“We are committed to broadening our development footprint in Australia and welcome the opportunity to further expand our global relationship with Lendlease to deliver to the Melbourne community this quality build-to-rent opportunity. Housing accessibility is front of mind for Daiwa House and this build-to-rent opportunity is reflective of our commitment to assist with increasing the supply of quality and well positioned rental accommodation for the residents of Melbourne.”
Koji Morishige, CEO, Daiwa House Australia
Lendlease will develop, construct and act as the investment manager for the Melbourne Quarter development, which has an end value of circa $650m. The company will also retain a 25% interest in the development.
Daiwa House is Japan’s largest home builder and one of Japan’s largest property developers, with over six decades of experience in single-family housing, rental housing, commercial facilities, logistics and condominiums, with a particular focus on carbon neutrality across all developments.
The partnership with Lendlease marks Daiwa House’s entry into Australia’s Build to Rent market and reflects confidence in Melbourne and the Build to Rent asset class.
