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Queensland developer Homecorp Property Group has secured backing from Morgan Stanley to create the $200 million Capital Court residential precinct in the heart of the Gold Coast's education and technology hub at Varsity Lakes.
Homecorp reached a partnership deal with the global funds manager to develop the a build-to-rent project comprising four towers, ranging in height from 9 to 16 storeys.
The development, to be undertaken in two stages with construction to begin in late 2020, will bring to the market one and two-bedroom apartments that offer views of Varsity Lakes to the ocean from the ridgetop location on the corner of Main Street and University Drive.
Gold Coast-based Homecorp highlights the build-to-rent business model is well established in the UK and the US, providing a long-term income-generating asset class.
"This project leads Homecorp into a new era by leveraging us into a sector that we believe will command a much higher market share over the next decade," says Homecorp founder and chief executive officer Ron Bakir.
"It's a compelling business model that has been recognised by Morgan Stanley at a time when affordability constraints are impacting home ownership levels.
"This will be the first purpose-built project for the Gold Coast to utilise the build-to rent model and it comes at a time when tight rental vacancies have persisted in the local market for many years."
Bakir says Capital Court has been designed to create a unique residential community within the Varsity Lakes education and commercial village centre
"These will be residences where families may choose to live for many years at a time, even across generations, so this project has been designed with that specific purpose in mind," he says.
Homecorp's construction arm, established by Bakir in 2014, is majority-owned by Japanese industrial giant Toyota.
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