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.
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.