Developer and operator Local: Residential has acquired the 355-apartment Build to Rent scheme at 15–37 Bank Street in South Melbourne, signalling strong investor confidence in the sector and Melbourne’s inner-city residential market.
Following its establishment as Australia’s largest Build to Rent platform in 2025 and its recent appointment by Development Victoria to deliver the third and final parcel of the iconic Fitzroy Gasworks precinct, Local continues to maintain its expansion with the acquisition.
The tenure arrangement comprises studios, one-, two- and three-bedroom apartments, with 10% designated as affordable housing. Approximately 1,100 sqm of premium amenities will include coworking spaces, gym and wellness facilities, lifestyle and entertainment areas, a heated pool, rooftop terrace, and pet-friendly facilities.
With a stabilised asset value of $370m, the scheme is Local’s second South Melbourne site. It complements 245 Normanby Road, which is due for completion later this year.
“Securing this second South Melbourne site is incredibly exciting, enabling us to deliver 355 additional residences in one of Melbourne’s most connected inner-city precincts.
“The extensive amenity offering and high-quality sustainably designed apartments that offer security of tenure for renters, combined with prime location of the asset is consistent with Local’s offerings in Southport, Kensington and the newly opened Box Hill location.”
Chris Axsentieff, Head of Investments, Local
The transaction further strengthens Local’s pipeline of residential assets, which now comprises approximately 4,000 units with a stabilised value of $3.25bn, including 2,156 operational units valued at $1.55bn across the eastern seaboard. This demonstrates strong institutional confidence in Build to Rent as an asset class and Local’s proven delivery and operational model.
The development sits on the fringe of the Melbourne CBD in the highly desirable Domain precinct, surrounded by parklands including the Royal Botanic Gardens and Albert Park Lake.
Residents will benefit from exceptional transport connectivity, with multiple trams along St Kilda Road providing CBD access in under 20 minutes and the ANZAC Metro Station connecting to universities and major health institutions in just three stops.
CBRE Development Site specialists Trent Hobart and David Minty along with the CBRE Living Sectors Andrew Purdon and Alex Shaw represented the owner OTPP and Hines in this negotiation.
“The site was eagerly contested by private and institutional Build to Sell developers as well as a range of Developers utilising international capital with a Build to Rent strategy.
“The market was attracted to the site due to its location and the fact that it had a planning permit that was ready for immediate development that was designed by Rothe Lowman architects.”
Trent Hobart, Development Site Specialist, CBRE
Local remains highly active across multiple markets, responding to strong local and investor demand whilst continuing to expand its footprint in Australia’s Build to Rent sector.
“Local’s acquisition of the site underscores the strong and sustained investor demand for high‑quality Build to Rent development opportunities across Inner Melbourne. South Melbourne offers exceptional conditions for Build to Rent, supported by a substantial renter population, world‑class public transport connectivity, and a diverse range of local amenities.”
Andrew Purdon, Regional Director, Living Sectors, Capital Markets, Pacific, CBRE
