Morgan Stanley Backs Homecorp Build-to-Rent Bid


Homecorp Property Group will now join with Morgan Stanley to complete a $200 million build-to-rent precinct on the Gold Coast.

The major shareholder in the project originally lodged a development application for the 2-6 Capital Court, Varsity Lakes site in September last year as a joint venture with Sunland Group and Condev Construction.

The approval plans for Capital Court had four towers ranging in height from 9 to 16 storeys, on an elevated 1.3-hectare site between Bond University and Robina Town Centre.

Council is yet to decide on a tweaked proposal which will add 57 dwellings to tower four, adding to the already-approved 386 dwellings.

The development will be one of the first new dedicated build-to-rent projects for the city following on from the converted Commonwealth Games athletes’ village.

The development will be constructed in two stages and includes one and two-bedroom apartments, a cafe, outdoor swimming pool area, gymnasium, dog-wash park, games room, cinema and rooftop terrace.

Homecorp is expected to start the first stage Capital Court construction this year with partner Morgan Stanley. Condev still have a smaller share in the venture while Sunland is no longer a partner.

Related: Uni Backs Gold Coast Student Housing Tower Plan

▲ Four build-to-rent towers are planned for the Capital Court site on the Gold Coast.
▲ Plans for four build-to-rent towers on the Gold Coast have been tweaked to add additional dwellings and increase the rental potential of the site.

Homecorp chief executive Ron Bakir said this was a major step towards a diversification of their portfolio into an emerging sector of the property market.

“This project leads Homecorp into a new era by leveraging us into a sector that we believe will command a much higher market share over the next decade,” Bakir said.

“It’s a compelling business model that has been recognised by Morgan Stanley at a time when affordability constraints are impacting home ownership levels.

“This will be the first purpose-built project for the Gold Coast to utilise the build-to rent model and it comes at a time when tight rental vacancies have persisted in the local market for many years.”

The Gold Coast-based developer has delivered more than $1.5 billion in residential projects Australia-wide during the past 16 years.

Homecorp’s construction arm, established by Bakir in 2014, is now majority-owned by Japanese industrial giant Toyota.

Bakir is also known for establishing the Crazy Ron mobile phone chain in 1995.

The emerging build-to-rent asset class has picked up momentum in Australia and has a growth rate on par with the United Kingdom.

Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: