Mirvac Secure BTR Site in Melbourne
Mirvac hasn't wasted anytime in investing the proceeds of its latest capital raising, securing a build to rent site in Melbourne with an investment of $333.5m.
The Group announced this week that it has entered into a binding agreement with developer, PDG, to acquire 490 completed build-to-rent apartments in the Munro development within the Queen Victoria Markets.
The 6500-square metre Munro site opposite the famous Melbourne market, was originally acquired by the City of Melbourne for $76 million in 2014 and is being developed into a $450 million apartment, hotel and community hub by PDG. In late April 2019, Sydney-based boutique hotel chain Veriu announced it will operate the new 111-room hotel on part of the site.
The purchase by Mirvac announced this week will be structured on a fund through basis is subject to a number of conditions precedent, including planning and redesign, which will ensure the building delivers purpose-built, build-to-rent product.
The purchase prices represents a price of just over $680,000 per apartment.
The expansion into Melbourne follows the construction of Mirvac’s first purpose-built build-to-rent asset in Australia, at Mirvac’s Pavilions project at Sydney Olympic Park in NSW, due for completion in September 2020.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said, “Renting has become a lifestyle choice for a much wider group of people who want to be closer to work, and other lifestyle amenities. 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. It will deliver a secure and valuable revenue stream, as well as presenting us with a new and growing customer base. We are excited to drive the establishment of the build-to-rent sector in Australia, for which we see enormous potential over time.”
Mirvac's recent $750 million placement was raised to fund a range of existing and potential developments in commercial, industrial, residential and mixed-use projects, with an end value of $6 billion in total.