Deal profile | Gadens assists Greystar in launching Australia’s largest build-to-rent project yet
6 February 2020
Following the success of the built-to-rent (BTR) housing markets in the US and UK, Greystar has announced its first Australian BTR project, a $400 million mixed-use development in Melbourne.
Greystar, the largest operator of rental housing in the US has announced the purchase of two adjoining sites in the thriving and popular inner-city suburb, South Yarra. The neighbouring blocks were purchased separately in off-market deals and together represent one of the last development opportunities in the area.
The proposed multi-purpose precinct will combine 1,000sqm of retail, 5,000sqm of office space and over 500 ‘pet friendly’ BTR apartments with premium amenities and a business centre.
Gadens was engaged to advise on the acquisition of both sites including undertaking due diligence and advising on the contracts of sale.
Commenting on the acquisition, Lui Scipioni said “It has been a pleasure to work together with Greystar in launching their first Australian build-to-rent project. The acquisition is a significant milestone and we are excited to continue supporting Greystar in leading the Australian build-to-rent market.”
Matter value: $400 million
Practice groups involved: Property.
Key team members: Partner, Lui Scipioni led the matter, supported by Rebecca Sharman (Senior Associate) and Michael Mercier (Associate).
Matter significance:
Following the success of the BTR housing markets in the US and UK, Australian industry groups are taking significant steps forward to establish and develop a similar market in Australia. Over the last 24 months, State Governments have amended guidelines for foreign investor stamp duty and vacancy tax to provide exemptions for eligible BTR developments and have also provided investment funding for BTR Pilot Projects. A number of major property developers are looking to secure various BTR projects across Melbourne and Sydney. The staggering interest promises strong growth, presenting the likelihood of BTR becoming one of the most attractive real estate sectors to invest.
