CONSTRUCTION is now underway on Lendlease’s new $500 million BTR development on Melbourne’s Docklands, shortly after announcing its partnership with Japan’s Nippon Steel to deliver the project.
With construction marked with a sod turn, the 499-unit development at 899 Collins Street in the Docklands is scheduled for a 2026 completion and will comprise a mix of studio, one-, two- and three-bedroom apartments across 24 levels.
The development will boast external communal spaces with an outdoor pool and amenities including a full-sized and fully equipped gym, cinema, wellness treatment rooms and private dining rooms. As well as views across Victoria Harbour and the Yarra River out to Port Philip Bay.
899 Collins Street will also be an all-electric project and target a 5 Star Green Star Building rating.
This will be the third BTE building developed by Lendlease in Australia, with Exhibition Place in Brisbane and a Melbourne Quarter development currently under construction.
“As our third build-to-rent project in Australia, and the second in Melbourne, this project again brings our global capability and expertise to the local market as we continue to see enormous potential in this sector to support the growth and productivity of our cities,” said Tom Mackellar, CEO of development at Lendlease.
“It’s important to focus on increasing supply and improving the housing options available, especially in places people want to live, close to jobs and transport.”
Lendlease announced their partnership with Nippon Steel Kowa Real Estate (NSKRE) to deliver the development, earlier this month. With the project marking NSKRE’s first move into the Australian market.
“NSKRE is pleased to partner with Lendlease on 899 Collins Street development, our first entry into the Australian market,” said Itaru Ishihara, managing director of international business at NSKRE.
“We look forward to commencing works on this build-to-rent development which will offer an ideal lifestyle right on the waterfront, while addressing Melbourne’s growing need for housing.”
Lendlease, who boast a 5,200-unit portfolio in the sector, will develop, construct and act as the investment manager for the development.
“With 899 Collins now underway, Lendlease has close to 2,000 apartments under construction across the Melbourne Quarter and Victoria Harbour precincts of Docklands, which together amount to over 6,500 build-to-rent and on-market apartments once the precincts are complete,” added Mackellar.
“Melbourne is fast becoming Australia’s build-to-rent capital of Australia, offering high quality rental accommodation and living experience in sought after locations, with Docklands offering future residents an exceptional lifestyle while being a stone’s throw from the CBD.”
In Docklands alone, Victoria’s Allan government has approved AsheMorgan’s 925-apartment project plans at 24 Little Docklands Drive, near Marvel Stadium and the Esplanade; Gurner and Liberman family-backed joint venture partner City Harbour this year unveiled plans for a “futuristic wellness and anti-ageing utopia” within their $1.7 billion Elysium Fields project on Harbour Esplanade, which will include a build-to-rent component within its 1,350 apartments, while developer Samma Property Group has the green light for a $250 million tower with build-to-rent on the Yarra River.
Lendlease recently announced former Bunnings CEO John Gillam as a director and chairman-elect to succeed Michael Ullmer, responding to pressure for change from shareholders.
Lendlease is in the process of simplifying and recycling $4.5 billion of net capital, with $2.8 billion targeted by 30 June 2025.
This includes recent strides including the $1.3 billion sale of 12 Australian Communities projects to Stockland, the completion of the sale of its US construction business and the sale of its US military housing business for $480 million.
In addition to forming a joint venture with Warburg Pincus, to establish a Asia Pacific life sciences investment platform.
This comes after, Lendlease posted a massive $1.5 billion loss in August, with the group announcing a $4.5 billion divestment program in May, after heavy pressure from shareholders.
