Approval of a build-to-rent development at a former Honda dealership in Melbourne’s inner-city Collingwood has been fast-tracked by the state.
According to an Officer Assessment Report, the 5400sq m site at 21-53 Hoddle Street, 2.6km from Melbourne’s CBD, would encompass 407 apartments across two towers ranging from 10 to 18 storeys, with a maximum height of 60 metres.
The $183-million project would include a mix of studio apartments (18.7 per cent), one-bedroom units (43.7 per cent), two-bedroom apartments (27.1 per cent) and three-bedroom homes (10.6 per cent), with 10 per cent of units designated as affordable housing.
The approved scheme follows amendments to the original application made in August, 2023, which incorporated reduced building heights, increased tower setbacks, redistribution of mass and the addition of publicly accessible open space.
The revised proposal, which has secured council support, reduced the development to 10 and 18 storeys with 200 carparking spaces.
The project is a partnership between global build-to-rent operator Greystar and Malaysian developer UEM Sunrise.
Under the deal, Greystar is the investor and owner-operator through a fund-through structure, with UEM Sunrise as developer and delivery partner.
Proposed for a site near North Richmond train station, the development would feature extensive resident amenities including a swimming pool, gym, movie room, wellness and entertainment spaces, co-working facilities and concierge services.
A three to six-storey podium would incorporate five ground-floor retail tenancies totalling 1193sq m, while a 255sq m community space would be leased rent-free to a non-profit organisation for 10 years.
The Cox Architecture design was selected following a competition between four Australian architectural practices.
Plans include a public town square with food, beverage and retail offerings, plus new pedestrian links between Hoddle, Langridge and Islington Streets. The project would provide 301 bicycle spaces with end-of-trip facilities.
The development will target a 5 Star Green Star rating and features a 7-star average NatHERS rating. Sustainability initiatives include a 40,000-litre rainwater tank for common area toilets, water-efficient fixtures, and electric vehicle charging infrastructure for 10 per cent of car spaces.
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The project was fast-tracked as part of the Victorian Government’s Development Facilitation Program, which provides an accelerated approval pathway for build-to-rent projects.
Eligible developments completed between January, 2022 and December, 2031 receive a 50 per cent land tax concession for up to 30 years, plus full exemption from Absentee Owner Surcharge.
Previously owned by businessman Tony Jowett, who bought it from Coles Group in 2008 for $4.6 million, the site was purchased by UEM Sunrise from Jowett Properties for $43 million in 2020 and sold to Greystar in July, 2023 for $277 million. The sale was subject to planning approval, in a transaction brokered by Colliers.
According to property advisory firm Charter Keck Cramer, Melbourne leads Australia’s build-to-rent sector as the home of about three-quarters of all projects completed nationally last year.
The firm reports 580 apartments were completed in Melbourne during 2023—there are 18,200 either under construction or holding planning approvals.
The proposed $183-million development in Melbourne’s inner ring adds significant institutional-grade stock to the city’s rental market.
