Investa and The Salvation Army have joined forces for a studio-living development in the Sydney CBD.
Calling it the first of its kind for the city centre, the $230-million plans are porposed for 140 Elizabeth Street.
Investa head of new business and origination Stuart Rowe told The Urban Developer they had “partnered with The Salvation Army through a development agreement under which Investa will deliver them a stratum for their exclusive use at completion of the development”.
“Investa and the capital partner [or partners] will be the owner of the studio-living asset on completion,” Rowe said.
The project, comprising 245 fully furnished, self-contained studio apartments, marks Investa’s first foray into the sub-sector on the back of its three-asset build-to-rent portfolio.
The development would incorporate co-working spaces, indoor entertainment, dining areas and outdoor terraces.
The Salvation Army would maintain a presence in the building on the ground and first floors.
Investa chief executive Peter Menegazzo said the company had a “high conviction in the living sector, evidenced by the 1400 build-to-rent apartments completed and under construction and an ability to unlock further suitable studio-living sites”.
A 10-storey building is on the site, which has three street frontages across 1038sq m and is 600m from five downtown train stations and the Surry Hills dining precinct.
The property’s university tenants hold leases until 2026.
The development represents a significant shift from initial plans revealed in June of 2023, when The Salvation Army sought expressions of interest for a potential office or hotel development partner.
Those plans outlined scope for up to 28 levels with a gross floor area of nearly 16,000 square metres.
Sydney City Salvos manager Mitchell Evans said the site’s significance had a “long and important history within The Salvation Army” and that the organisation would continue to deliver community services from the location.
Investa chief investment officer Adam Crowe said the project responded to “significant tenant demand for greater diversity of housing, planning and regulatory certainty, and Investa’s development skillset … [which] is what is driving our investment in this emerging sector”.
The studio-living concept aimed to provide a cost-effective alternative to traditional housing in CBD locations, targeting occupants who prioritised proximity to work, public transport and entertainment, Crowe said.
“Studio living, like build-to-rent, is well established overseas and we are very pleased to be ahead of the curve in Australia to offer a housing option that meets the demand of customers and our capital partners.”
The Elizabeth Street development formed part of Investa’s broader expansion into residential development, and the company had already identified additional studio-living opportunities across CBDs and fringe locations, Rowe told The Urban Developer.
“With the addition of 140 Elizabeth Street, Investa’s Living platform (build-to-rent and studio living) has an on-completion value in excess of $1.2 billion across a portfolio of 1650 apartments,” Rowe said.
“We see significant growth opportunities in the living sector underpinned by the development pipeline supporting the studio-living strategy where we are looking to develop a broader venture and are seeking a first-round equity commitment of $400 million.”
Subject to planning consent, construction is expected to begin in 2027 ahead of completion in late 2029.
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