Australian property group Mirvac has entered into a binding agreement to acquire a Build-To-Rent apartment tower in Melbourne’s CBD for A$333.5m (US$233.2m), its first BTR deal in the city.
Mirvac, which has A$18bn of assets under management, has purchased the 490-unit Munro development from developer PDG on a fund through basis, the buyer said.
The Munro project is opposite the city’s historic Queen Victoria Market and is part of the A$450m renewal of Melbourne’s famous inner-city precinct, according to law firm Allens, which advised Mirvac.
The transaction follows the construction of the Pavilions BTR project in Sydney, Mirvac’s first purpose-built BTR asset in Australia.
“Renting has become a lifestyle choice for a much wider group of people who want to be closer to work, and other lifestyle amenities,” said Mirvac CEO and managing director Susan Lloyd-Hurwitz.
“We believe build-to-rent can revolutionise the rental experience with improved choice, quality and security of tenure.
“Build-to-rent is one of the largest real estate asset classes in the world and entering into this asset class makes good business sense for Mirvac.”
Mirvac’s Sydney Olympic Park project will feature 315 apartments, with leasing to commence in June 2020 and construction scheduled for completion in September that year.
Mirvac raised A$750m from investors in late May to fund new projects, including the Melbourne BTR project, and repay debt.
Listed on the Australian stock exchange, Mirvac owns office, retail and industrial real estate and focuses on the Sydney, Melbourne, Brisbane and Perth markets.