Hines Lodges Plans for Third Built-to-Rent Project

International investment manager Hines has continued to bet on the build-to-rent sector of the property industry, filing plans for its third Melbourne project with the City of Port Phillip Council.

The lots at 15-29, 31-33 and 35-37 Bank Street will form one 2900sq m site with a 18-storey tower of 355 apartments.

There will be 87 studio apartments, 136 one-bedroom apartments, 117 two-bedroom apartments and 15 three-bedroom apartments.

According to council records, the project will have 141 carparking spaces and 355 bicycle spaces for residents, 36 bicycle spaces for staff and one for staff at the ground-floor level, accessible from Little Bank Street.

Council records list a development cost of $130 million for the entire project.

The plans have been designed by Rothelowman Architects.

Hines is the second largest global build-to-rent developer after Greystar with 51,000 properties in the US and the UK alone and it manages $117 billion in global real estate assets.

“Our global expertise, coupled with local track record, in residential and build-to-rent development, operations, and investment management has allowed us to secure a portfolio of over 850 build-to-rent units with an end value of approximately $820 million,” Hines head of living Australia Sam Bisla said.

Hines has three build-to-rent sites across Melbourne, including the Bank Street site. 

The second site is a 3000sq m site with a planned 250 apartments at 36-58 Macauley Street, North Melbourne, which was purchased for $30 million in early 2022.

▲ At 36-58 Macaulay Road at North Melbourne, Hines has plans for 250 build-to-rent apartments overlooking the North Melbourne Recreation Reserve.

At the third site at 10 Ballarat Street at Brunswick, Hines expects an end value of $250 million for its 250 apartments.

Hines stated that they bought the first two Bank Street lots for a combined $40 million in 2022 with 35-37 Bank Street going for a similar rate when the acquisition was announced in May 2022.

Corelogic records state that the first two sites last exchanged hands prior to the acquisition in March 2016 for $22.5 million and $7.5 million while 35-37 Bank Street was sold in April 2022 for $6.5 million with settlement in October 2022.

The project is in the heart of the Domain Precinct and close to the future Anzac Station and the Royal Botanic Gardens.

▲ Hines is planning a 250-apartment build-to-rent complex on this site at 10 Ballarat Street.

A three-storey commercial building and six-storey commercial building now occupy the site and are earmarked for demolition as part of the plans.

The application was lodged in December 2022 and has been referred to the Public Transport Authority as part of the planning process.

JLL is predicting that by 2024, more than 7000 build-to-rent apartments will be built in Australia with more than two-thirds of them located in Melbourne.