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National developer Lendlease (ASX: LLC) and Nippon Steel Kowa Real Estate (NSKRE) are partnering in a $500 million build-to-rent project for Melbourne’s Docklands precinct that represents an Australian debut for the Japanese property group.
The joint venture is the third build-to-rent (BTR) project being undertaken by Lendlease, which currently is progressing construction of the Exhibition Quarter in Brisbane and the Melbourne Quarter on Collins Street.
NSKRE is taking a 40 per cent stake in the new Docklands joint venture which is planned for 899 Collins Street at Lendlease’s Victoria Harbour master-planned precinct which has been under development for the past two decades.
Lendlease notes that it will bring in other partners as the project progresses, with construction set to start on the BTR project before the end of this year.
“The launch of our first-ever partnership with NSKRE to deliver a new build-to-rent development on Melbourne’s waterfront represents a strategic opportunity to leverage our shared global expertise in this sector as we deliver Lendlease’s third build-to-rent project in Australia,” says Tom Mackellar, the CEO of development at Lendlease.
“This announcement also highlights the continuing demand from our Japanese partners for high quality opportunities across our development pipeline, and we look forward to working together to deliver on NSKRE’s first project in the Australian market.”
Lendlease’s BTR portfolio totals 5,500 apartments comprising 2,700 apartments currently being delivered and 2,800 completed apartments under management.
NSKRE is a Tokyo-based property developer and real estate business undertakes large-scale residential projects as well as office and logistics developments including high-end rental condominiums internationally.
The company’s origins stretch back to 1952 when it was founded as Kowa Real Estate before its merger with Nippon Steel City Produce, Inc. in 2012.
NSKRE’s managing director of international business, Itaru Ishihara, says the joint venture with Lendlease aligns with the Japanese company’s strategy of collaborating with “reliable local partners when expanding our operations overseas”.
“As we make our inaugural entry into the Australian market, we are delighted to partner with Lendlease, a company renowned for its outstanding achievements and significant presence in Australia,” says Ishihara.
“Moreover, this project aims to address the housing needs of Melbourne’s growing population, focusing on the increasingly popular BTR sector.
“We are committed to ensuring its success through close cooperation with Lendlease and other stakeholders.”
The 24-storey Docklands development will comprise 499 apartments ranging from studio and one-bedroom formats to two- and three-bedroom apartments.
The project will include external communal spaces that take advantage of the waterfront site comprising an outdoor pool overlooking Victoria Harbour, a dog park and outdoor rooftop barbecue area.
Among the residents’ amenities planned are music and podcast rooms, lounges, a fully equipped gym, cinema, wellness treatment rooms and private dining rooms.
Lendlease is targeting a 2026 completion for the Docklands BTR project.
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