Lendlease and Daiwa House partner to deliver $650m build-to-rent project at Melbourne Quarter

Lendlease and Daiwa House Australia today announce a new partnership in Australia to deliver a build-to-rent apartment development at Melbourne Quarter.

The announcement delivers on the two organisations’ commitment to work together on real estate development opportunities in global gateway cities, having recently partnered to deliver Claremont Hall residences in Manhattan.

The development, located at the southern edge of Melbourne’s CBD at 646-666 Flinders Street, will be the second build-to-rent residences to be delivered by Lendlease in Australia as it continues to expand its international capability locally.

Lendlease will develop, construct and act as the investment manager for the development, which has an end value of circa $650 million. Lendlease will retain a 25 per cent interest in the development.

Daiwa House is Japan’s largest home builder and one of Japan’s largest property developers, with over six decades of experience in single-family housing, rental housing, commercial facilities, logistics and condominiums, with a particular focus on carbon neutrality across all developments. The partnership with Lendlease marks Daiwa House’s entry into Australia’s build-to-rent market and reflects confidence in Melbourne and the build-to-rent asset class.

The development is set to offer a high-quality, tenure secure alternative to the traditional apartment rental market with 797 residences in a mix of studio, one, two and three bedroomapartments spanning 45 levels. Residents will have access to first-class amenities and communal spaces including a 25m lap pool, bowling alley, karaoke and music studio, co-working space, virtual sports and games rooms, cinema, fully equipped gym with spa, sauna and steam rooms, with a dedicated on-site concierge.

Bordered by Collins and Flinders streets, and in close proximity to Southern Cross Station, the build-to-rent development forms the final piece of Lendlease’s Melbourne Quarter precinct. As a modern and sustainable mixed-use precinct, Melbourne Quarter will be home to 14,000 workers and more than 3,800 residents on completion. The build-to-rent building will be all-electric and target a 5 Star Green Star Design & As Built v1.3 rating. Construction is due to commence in August 2023, with residents to take occupancy from early 2026.

Dale Connor, CEO Lendlease Australia : “Daiwa House’s investment in our build-to-rent project in Melbourne further strengthens the relationship between our two organisations as we bring the best of our shared global expertise to this development opportunity. “This announcement highlights continuing demand from our Japanese partners for high quality opportunities across our global project pipeline – in total, we’ve now secured Japanese investment in projects totalling approximately $11 billion in end development value. It also represents a major vote of confidence in Australia’s property market.”

Koji Morishige, CEO Daiwa House Australia : "We are committed to broadening our development footprint in Australia and welcome the opportunity to further expand our global relationship with Lendlease to deliver to the Melbourne community this quality build-to-rent opportunity. “Housing accessibility is front of mind for Daiwa House and this build-to-rent opportunity is reflective of our commitment to assist with increasing the supply of quality and well positioned rental accommodation for the residents of Melbourne.”

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