The first stage of Local Residential’s build-to-rent project in Melbourne’s Kensington has opened.
The project at Macaulay Road, about 4km north-west of the CBD, is the developer’s first build-to-rent project.
Being built by Hacer Group, it will comprise 477 apartments upon completion in a mix of one, two and three bedrooms across six eight-storey buildings in a campus-style precinct with a shared internal courtyard.
There will also be 461sq m of retail space along Macaulay Road and within the Macaulay-Stubbs precinct.
The estimated end value is $315 million.
Residents will have access to private dining rooms, 250sq m of gym space, a wellness area, co-working area, cinema, art studio, lounge, and outdoor pool and deck.
Hayball designed the plans for the project, which has a full practical completion date of November this year.
The development includes 33 social and affordable homes, and nine specialist disability accommodation homes will be delivered within the project by Home in Place.
Local Residential co-chief executive Dan McLennan told The Urban Developer that the project followed sustainable design.
“We think it’s effectively the most sustainable build-to-rent asset that’s been delivered in Australia, and the first one to achieve a 6-star Green Star rating, which really sets it apart ... and provides a holistic endorsement of the sustainability of the project,” McLennan said.
McLennan also noted that the project would have a 200kW solar farm on the roof space.
“So, the project itself will be fully electric and operate on renewable power,” McLennan said.
“But what this system enables us to do is to generate an incredible amount of that power actually on site.
“So it’s a 9000sq m site, campus-style development that equates to a lot of roof space.
“We see roofs as fantastic little mini solar farms for our projects.”
McLennan said the company was looking at affordable build-to-rent options alongside its usual market price build-to-rent offerings.
“Local’s focus is on build-to-rent assets, and we are certainly looking at opportunities within what we would see as the build-to-rent space ... that includes not only market build-to-rent offerings, but also looking at opportunities to provide affordable build-to-rent assets and how they can be structured,” McLennan said.
“We are working with our investors right now around opportunities to create more affordable build-to-rent, alongside what we’re doing currently in terms of our market build-to-rent.”
McLennan said that build-to-rent-to-own, an option other developers including Assemble and PDG are exploring, was not an option for Local Residential.
Local has more than 1300 apartments being built across Melbourne.
The City of Melbourne is waiting on key planning scheme amendments to change infrastructure contribution charges for the Kensington and Macaulay areas.
