The Build to Rent sector, a growing thorn in the side of the retirement industry, has been given a $500 million push by Macquarie Bank.
Grocon’s former head of development, Matt Berg, and former transaction manager, Dan McLennan (pictured), are behind the venture, Local, which has secured in excess of $500 million for its future Build to Rent projects through Macquarie Asset Management.
The first project, at Kensington, 4km northwest of Melbourne’s CBD, is in the planning phase and is expected to be delivered by 2025.
All local projects incorporate a targeted component of impact housing with accommodation to create positive social impact, focusing on three groups – key workers such as nurses and hospitality workers, people living with a disability and women over the age of 55 who are at risk of homelessness.
The number of Build to Rent units at an advanced stage in the Melbourne pipeline has increased by almost 70% over the past 12 months from 4,700 units spread across 14 projects to almost 8,000 over 21 projects, according to JLL.
In Sydney, there are almost 2,000 Build to Rent apartments in supply and the pipeline, across seven projects. The Gold Coast and Brisbane have more than 1,200 and 1,300 Build to Rent units respectively – while Perth has almost 440 units in two projects, according to JLL.