KUALA LUMPUR: UEM Sunrise Bhd has partnered with Greystar Real Estate Partners to develop the first "build-to-rent" (BTR) project in the inner-Melbourne suburb of Collingwood.
This is the first BTR project by a Malaysian developer in Australia, in a bid to strengthen UEM Sunrise's presence there.
The agreement will see Greystar as the investor and eventual owner-operator of the proposed BTR development through a fund-through structure, with UEM Sunrise as the developer and delivery partner.
The project's value of the transaction is about AS$277 million (RM881 million).
UEM Sunrise chief executive officer Sufian Abdullah said moving into Melbourne's burgeoning BTR market marks a new chapter for the company, as it continues active expansion in the Australian market.
He added that UEM Sunrise has seen significant demand for BTR projects as people seek out more housing options, as well as the sense of a long-term community.
"Melbourne has just become Australia's most populated city, which has made it the right place for UEM Sunrise to invest in the asset class.
"We look forward to working with Greystar and the City of Yarra to bring this exciting development to life," he said in a statement today.
Situated at 21-53 Hoddle Street (and subject to planning approval), the proposed development is expected to include 400 apartment units across two buildings, with a mix of studios and one-, two- and three-bedroom apartments suitable for multi-generational living.
It will also feature extensive common facilities and services for residents including swimming pool, gym, movie room, wellness and entertainment spaces, bike parking, electric vehicle charging stations, concierge, and co-working spaces.
The proposed development is UEM Sunrise's third milestone in its expansion in the Australian market.
Planning documents are expected to be submitted in July 2023, and subject to planning and approval, construction is anticipated to commence in mid-late 2024 and take about three years.
UEM Sunrise completed the purchase of the site at 21-53 Hoddle Street in Collingwood from Jowett Properties in March 2021.