Build to Rent group MODEL has launched its first Build to Rent development in Abbotsford, Melbourne, following six months of planning and feasibility testing.
Located adjacent to the Victoria Park train station at 276 Johnston Street, the 13,000 sqm (GFA) building – MODEL on Johnston – will include 200 apartments across 17 storeys.
It is set out to be a global exemplar in sustainable development, as the building will target 6 Star Green Star and 9-star NatHERS ratings, a 50% reduction in embodied carbon (when compared to standard developments), be 100% powered by renewables, and operate at net-zero emissions.
MODEL on Johnston will be the tallest mass timber residential building in Melbourne, as well as the first large scale apartment complex in Australia to achieve Passive House certification.
The $120m development was brokered by JLL Australia, with Dora Stilianos of Baker McKenzie managing the legal transaction.
“JLL’s recent paper Early Mover Advantage (Nov 2023) shows that commercial tenants are willing to pay higher rents for Net Zero properties with strong sustainability credentials and that valuations benefit from lower cap rates. We believe this trend will extend to the Build to Rent sector.
“Our pioneering approach offers investors not only reduced operational costs and efficiency but also the potential for enhanced financial performance as well as future proofing for evolving regulatory requirements.
“MODEL on Johnston will be the first example of our ‘no compromises’ approach: decarbonising at scale; creating a warm and dry thermal envelope along with a deep sense of community for residents; and delivering strong, ongoing returns for investors.
“We’re about creating great places to live and enhanced experiences for renters to enjoy. We’re looking at urban, inner-city locations with great connections to public transport, rich cultural offerings in the neighbourhood and 10% of MODEL on Johnston’s apartments will be affordable housing.”
Rory Hunter, CEO, MODEL
MODEL’s CEO said that the blueprint for setting the new standard for decarbonising at scale is due to the hiring of expert talent and the integration of key project development partners at every stage.
“We’ve built an incredibly strong team at MODEL (more below) and put together a crack team of collaborators who we will work with at all key touchpoints, including architects Fraser and Partners; sustainability consultants HIP V. HYPE; structural and timber engineers BG&E; urban planners at Urbis; and quantity surveyors and carbon planners at Slattery.
“MODEL’s financial framework centres around the value returned over the life of the build, with outlay costs being both offset and capitalised on by significant operational costs savings and greater long-term resilience resulting in a de-risked asset.
“And by managing the development internally and focusing on sustainability, MODEL is positioned to capture the premium returns already seen in sustainable commercial office buildings.”
Rory Hunter, CEO, MODEL
Joining Rory Hunter to champion the development and management of MODEL on Johnston and other upcoming schemes – effective immediately – is MODEL’s Head of Development, Matthew Mattiske, and Chief Operating Officer, Phil Shelley.
Matt’s two decades of experience in property development and project management has seen him lead major projects here and offshore, working for the likes of Mirvac, Sinclair Brook and Majid Al Futtaim in the Middle East.
He led a development team that oversaw the development of Australia 108 – the tallest residential building in the Southern Hemisphere – and has developed over 13,000 residential apartments worth over $7bn in Melbourne during the past decade.
Phil has extensive leadership experience in both student accommodation and the Build to Rent sector, having launched Scape’s operating platform and most recently HOME, pioneering Melbourne’s first Build to Rent properties.
Phil has opened, launched and overseen over 6,000 living sector apartments in Australia, plus supported the design, acquisition and opening of an additional 10,000 with an end asset value of over $6bn. He’s also run his own successful consultancy, The Living Advisory.
“I’m proud to mark this milestone alongside such an incredibly experienced and accomplished duo.
“Having Matt in the role of Head of Development will ensure we’re decarbonising at scale and building exemplar structures. While Phil will lead the delivery side to provide outstanding amenity and an unparalleled renter experience.
“Cumulatively, this ladders up to healthy and sustainable returns for investors who get our point of difference. With us sharing similar backgrounds in hospitality, development and operations – as well as fundamental values – MODEL is a unique and formidable team.”
Rory Hunter, CEO, MODEL
MODEL was launched to the market late last year by Rory as a solution to the myriad challenges facing Australia’s built environment – supported by his white paper Tomorrow’s too Late: The Case for Regenerative Decarbonisation in Build to Rent.
