Novus has acquired a site in Parramatta to bolster its build-to-rent pipeline as interest in the segment continues its upward trajectory.
The site at 39-43 Hassell Street is on the corner of Hassell and Harris streets and fronts Robin Thomas Reserve.
It is the second acquisition for the Novus Build to Rent Trust, which has partnered with M&G Real Estate.
Novus chief development officer Jason Goldsworthy said the acquisition, completed off-market, marked Novus’s entry into the NSW market.
“Sourced off-market, this location benefits from a combination of favourable real estate fundamentals, strong resident demographics and attractive site-specific characteristics,” Goldsworthy said.
He said the Novus on Harris project was now in the planning stage.
“With the design competition under way, we look forward to working with the City of Parramatta and the NSW Department of Planning and Environment to deliver a purpose-designed build-to-rent offering into the Parramatta market,” Goldsworthy said.
Novus’s other project is the currently under construction Novus on Sturt at 153 Sturt Street in Melbourne’s Southbank comprising 173 build-to-rent apartments.
The Novus on Sturt project has Rothelowman-designed plans with amenities including a rooftop pool, sauna, steam room, work-from-home facilities, meeting rooms and function rooms.
The build-to-rent sector has been a poster child of the residential sector in recent years—Cushman and Wakefield predicts the number of units available will soar to nearly 16,000 in 2027. Currently, there are an estimated 1800 units available.
In 2020, land-tax reductions for developing a build-to-rent project in NSW and Victoria helped fuel interest.
Across the country, 14 major developers have announced 40 projects since 2020 with about 12,800 units planned, valuing the sector at $9.6 billion.
With only five projects planned in Queensland, WA and NSW, accounting for fewer than 2000 units, Novus’ move into the market in Parramatta is welcome news for the sector.
Most of the planned projects centre around Melbourne’s CBD and its fringe, including Docklands and Southbank, with 2700 units across seven projects in various stages of planning and construction.
Home Southbank at 256 City Road is the only completed build-to-rent project in Melbourne.
Developers working on projects include Assemble’s nine projects with 3600 units, LIV Mirvac’s three projects with 1500 units, Home with 1600 units, Greystar with a $500-million facility in South Yarra, and Investa planning for 5000 apartments.
