Sydney investment house AsheMorgan has lodged plans for Melbourne’s biggest build-to-rent development with more than 900 apartments across two buildings planned on the city’s edge.
The $700-million development—to be known as District Living—would sit on about 1000sq m at 24 Little Docklands Drive, Docklands.
AsheMorgan’s plans come just a week after global construction and real estate giant Lendlease and Daiwa House—Japan’s biggest homebuilder—announced a deal to deliver a 45-storey build-to-rent tower, also in the heart of Melbourne.
The two partners will begin construction on the 797-apartment tower next month.
AsheMorgan development director Mat Stoddart said the project would cater to the growing demand for apartments within the area, particularly for families who wanted to live in Docklands.
“Melbourne is facing a significant undersupply of housing over the coming four years,” Stoddart said.
“Research suggests there will be an undersupply of around 10,000 residences in 2026 alone. Couple this with a tight rental market and over 67 per cent of the population in Docklands already renting, it is an area ripe for a well-designed build-to-rent development.”
The 900-plus apartments comprise be a mix of studios, one, two, and three-bedroom units, and will be next to AsheMorgan’s 80,000-sq-m District Docklands—a mixed-use urban village.
AsheMorgan acquired the discount outlet shopping centre in December of 2014 and has since spent more than $250 million refurbishing and repositioning the facility. Core tenants include Woolworths, Costco, Hoyts, H&M and Uniqlo.
The build-to-rent development will give renters access to 4000sq m of facilities including a gymnasium, pool, sauna and steam room, as well as a sky terrace with kitchen and dining areas.
The project will also have about 2500sq m of private outdoor space including a dog park and dog wash, another fitness area, and landscaped garden. There will be ground-floor retail and about 1500sq m of public open space.
“More than 50 per cent of residents within Docklands are aged between 20 and 40, and almost 60 per cent are working as professionals or managers, making them the primary target market for build-to-rent,” Stoddart said.
He said long-term plans included connecting the buildings to nearby public transport via a footbridge overpass on Footscray Road.
The project will be all-electric with the developers targeting a 7.5 NAThers rating.
