The Gurner-Qualitas build-to-rent platform has finalised plans for its first Sydney development in the burgeoning asset class—a $450-million, 61-storey tower in Parramatta.
It is earmarked for a 2049sq m site at 12 Hassall Street and, if approved, will comprise 385 apartments.
Acquired last year for $70 million from Sydney developer Jean Nassif, the Parramatta site was the first seed asset for the Gurner-Qualitas partnership.
The Melbourne-based developer and its capital investment partner have raised $1.2-billion for their platform and have an ultimate aim of creating a portfolio of more than 5000 build-to-rent apartments.
ASX-listed Qualitas also recently announced it had secured a mandate from the Abhu Dhabi Investment Authority (ADIA) to invest $700 million in Australian commercial real estate private credit opportunities.
Under the deal, ADIA has been granted options to acquire an almost 10 per cent stake in the non-bank lender if it commits to further investment mandates totalling $1 billion.
The Gurner-Qualitas build-to-rent partnership also includes a $250-million 41-level tower on a Southbank site on the edge of Melbourne’s CBD and a $300-million project across two towers of 12 storeys and 28 storeys at St Kilda Junction.
The Parramatta proposal is the first build-to-rent development proposal being assessed under the New South Wales government’s state significant development framework.
Topped with a 15m-high “crown” it has been designed by architecture and interior design firm PTW, which edged out other contenders in the design competition.
The finalised plans provide a mix of studio to three-bedroom apartments, 4000sq m of commercial and retail space over four-level podium, a cafe and co-working hub, health and wellness amenties as well as a rooftop pool and deck with sunken lounges.
“This project will be a new beacon for Parramatta and bring a new level of luxury and exceptional service to the rental market that is unmatched throughout Sydney,” developer Tim Gurner said.
“We are astutely focused on NSW into the future and our aim is to grow a similar sized portfolio and team to our Melbourne office within the next five years.
“NSW is in critical need of quality rental stock, so we are confident in the build-to-rent model as a means of delivering this urgent stock to one of Australia’s most powerful rental markets.
“Sydney and its satellite cities including Parramatta continue to be a key focus for us as the recent planning regulation changes and introduction of the state significant development platform will pave the way for unprecedented opportunities across multiple asset classes.”
Qualitas global head of real estate and co-founder Mark Fischer said Parramatta provided the perfect location for the mixed-use development as the city continues its transformation as Sydney’s fastest-growing satellite CBD.
“The GQ (Gurner-Qualitas) development in Parramatta will be perfectly positioned to capture population growth and local demand for market-leading residential and mixed-use amenities,” he said.
“We see a multi-decade opportunity in the build-to-rent sector and expect this to accelerate during current market conditions, which is being recognised with significant pools of global capital.”
Learn more about the build-to-rent sector and what’s ahead for this red-hot segment of the industry at The Urban Developer’s Build-to-Rent vSummit on Thursday, August 25.
