Pembroke Strikes Deal with Greystar for Fitzroy BtR Site

Global real estate giant Pembroke has moved into Melbourne’s build-to-rent market, putting its foot on a site in Fitzroy. 

The 2600sq m parcel at 155 Johnston Street is less than 2km from the CBD where Pembroke owns the T&G Building at 161 Collins Street. 

Under the deal, Pembroke bought fellow global build-to-rent player Greystar out of the project but has retained Greystar as project manager.

The acquisition is part of a global diversification strategy for Pembroke, which has this year acquired the 195-unit The Lark in London and the 267-unit Fitzroy near Washington DC, both build-to-rent assets. 

Those properties are at 95 per cent and 96 per cent occupancy respectively. 

“Addressing a chronic shortage of housing is high on the Australian Government’s agenda, and the build-to-rent market in particular offers a huge opportunity for us ... as we double down on our global diversification strategy,” Pembroke regional director for Australia Joe Fitzpatrick said.

“This acquisition establishes a strong foothold for Pembroke in the Australian build-to-rent market.”

The company has not disclosed how much it paid for the site. CoreLogic property records show it last changed hands in May of 1988 for $1.1 million.

▲ Pembroke Australia director Joe Fitzpatrick said the acquisition was part of a global diversification strategy.

Pembroke is working on a masterplanned build-to-rent community for the site, that has a permit for 200 units across 11 storeys. 

Amenities including a residents’ lounge, co-working facilities, gym, bicycle storage, basement parking, and a ground-floor garden and courtyard are part of the approved scheme. 

Pembroke also owns 20 Martin Place in Sydney, its first purchase in Australia, made in 2011.

Pembroke senior vice-president Jack Clark confirmed the company was keen to acquire more assets in Australia as part of its global plans. 

“We have a strong appetite for more residential development opportunities and are focused on the US, Europe and Asia Pacific, specifically in Seattle, Washington DC, Boston, London, Munich, Hamburg, Tokyo, Sydney and Melbourne,” Clark said.

Greystar has several build-to-rent projects in Melbourne including a project with UEM Sunrise at Collingwood. 

It moved into the purpose-built student accommodation market last year.