Melbourne is the Australian capital of Build to Rent (BTR), which is surely a thorn in the side of retirement living operators, particularly in Victoria.

Daniel Grollo Group, financially supported by Singapore sovereign wealth fund GIC, have paid a speculated $80 million on the Bayview Eden, a hotel opposite Albert Park Lake, for its Home BTR brand.

Home will replace the triple fronted 6,988sqm site with 560 apartments in a $200 million project to be known as Home Albert Park. There will be retail shops on ground floor and the historic Netherby mansion at the centre of the site will be restored.  

The brand recently completed BTR projects at Richmond and Southbank in Melbourne and was recently given the go ahead for a BTR in Chapel Street, South Yarra.

Home’s development pipeline also includes BTR assets in Docklands and South Yarra, and at three suburbs in Sydney: Parramatta, St Leonards and St Peters.

Another hotel on the same street was sold 18 months ago to Altis and Aware Super for $72.7 million for a 17-storey BTR tower of 369 dwellings.

Mirvac’s first BTR, LIV Indigo at Sydney Olympic Park, is 96% full – a figure which should have all retirement operators worried.