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
Matter value: $400
team members: Partner, Lui Scipioni led the matter, supported
by Rebecca Sharman (Senior Associate) and Michael Mercier (Associate).
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