Property

Greystar adds to Melbourne project pipeline with acquisition of Fitzroy

  • Greystar announces the acquisition of two Melbourne sites
  • Both are to be developed into building complexes for rent
  • The latest acquisition announcement comes just two weeks after the groundbreaking of a $500 million build-to-let project in Melbourne.

International property developer, Greystar, is further expanding its reach into Melbourne’s build-to-let market with the acquisition of two new sites, both to be developed into build-to-let complexes.

The US-based company has announced the purchase of a 2,556 sq m site in Melbourne’s Fitzroy, just two weeks after launching a $500 million build-to-let project in South Melbourne .

Although details of Fitzroy’s development are not yet clear, Greystar will be working with Yarra Town Council to progress this project through town planning in the coming months.

Greystar’s Managing Director for Australia, Chris Key, points out that the purchase was “…a rare opportunity to secure a site suitable for construction and rental in the heart of Fitzroy”.

“[Fitzroy] is a highly sought after area for many reasons and so far has remained untapped by the rental building market.

Chris Key, Managing Director of Greystar – Australia

“It is without a doubt a suburb that is packed with some of the best retail stores, galleries, bars, pubs, restaurants and cafes in the city – and we look forward to being able to expand the lifestyle options in the area with a attractive rental proposition for future residents,” said Mr. Key.

Fitzroy’s purchase follows the acquisition of another Melbourne property at 352-400 Macaulay Road in Kensington. This site is to be developed into 400 build-to-let residential units with an expected final value of over $350 million.

Greystar’s new development is located within the City of Melbourne’s ‘Macaulay Urban Renewal Area’, which aims to transform the area from a predominantly industrial area into a thriving mixed-use area.

“Demand for high-quality rental housing in inner urban areas continues to grow as vacancy rates in Australian capital cities reach record highs.”

Residential vacancy rates in Melbourne

Mr Key explains that these latest acquisitions add to the existing pipeline in Melbourne, with around 2,000 building units for rent expected to be delivered across four projects. My Key hopes this will provide “…greater security of tenure for residents and increase the supply and diversity of rental properties in key inner suburbs,” Mr Key said.