Developer Suleman Group ‘s Union Quarter Spotswood, a completed Build to Rent development in Melbourne has been put to market in response to strong buyer demand. Located at 31-69 McLister Street in Melbourne’s inner southwestern suburb of Spotswood, is believed to be the first large scale completed Build to Rent asset to be offered to the market in Australia.
The development is being sold via an International Expressions of Interest campaign run by Knight Frank agents Langton McHarg, Stephen Kelly and Tim Holtsbaum, in conjunction with Conal Newland and Paul Savitz of Savills.
Set to become a thriving Neighbourhood Activity Centre with both retail and residential accommodation, the scheme has been designed by award-winning Baldasso Cortese, and delivered by Hickory. Suleman Group recently celebrated topping out at the new scheme.
To be home to over 500 residents, Union Quarter Spotswood is a mixed-use Build to Rent development comprising 332 new homes – a mix of one-, two- and three-bedroom apartments housed across two buildings. The McLister, a seven-storey tower includes 106 apartments, and The Hobson, an eight-storey tower includes 226 apartments.
Amenities include a co-working business lounge, social dining room, function spaces and communal terraces boasting panoramic views of the Melbourne skyline.
The scheme also has retail including a full-line Woolworths, Dan Murphy’s, a medical centre and chemist, together with specialty shops including a plethora of food offerings, a restaurant, and extensive basement parking.
With vast convenience right on the doorstep, the scheme will offer residents easy access to public transport and freeways. Union Quarter is also under seven kilometres from the Melbourne CBD and near the idyllic Williamstown Beach.
Union Quarter accounts for 16% of all operational Build to Rent units across Melbourne, providing vital residential accommodation and neighbourhood retail to Spotswood – a suburb enjoying incredible gentrification.
Development Director Zoran Pavlovic said there had been significant buyer interest in Union Quarter for some time – and is why the development is being taken to the market via a formal campaign.
“With a chronic undersupply of rental accommodation in Australia, more Build to Rent projects are needed in Australia, and investor appetite for these assets is strong, both domestically and from overseas capital.”
“Union Quarter is nearing completion, eliminating any development risk for an incoming purchaser in a market where construction costs are escalating, feasibility metrics are tightening for many Build to Rent projects.
“This defensive asset enables investors to enter the tightly held rental market to take immediate advantage of both income growth and future capital growth and secure an asset below replacement cost.”
Zoran Pavlovic, Development Director, HLA Group
Spotswood has a highly competitive and tight rental market, with vacancy at a record low of 1.1% according to SQM Research and forecast low levels of residential supply will help sustain occupancy and future rental growth.
