A large-scale build-to-rent (BTR) project in Melbourne by Malaysian property developer UEM Sunrise has secured $315.4 million in funding from Australian living-sector specialist Kio Investment Management.
UAE Sunrise is the property arm of UEM Group, a wholly owned subsidiary of Khazanah Nasional Berhad, which is the national sovereign fund of the Asian country.
The Collingwood development is a 0.54-hectare site at 21-53 Hoddle Street, located close to Melbourne’s CBD, and will deliver over 400 new homes.
Designed by COX Architects, the development features a collection of two stepped-form buildings comprising a mix of studio, one-, two- and three-bedroom apartments.
COX said earlier last year that each building will have a unique architectural identity, the materiality and palette of which are a nod to Collingwood’s industrial past.
The development will include a public town square with food and beverage offerings, retail spaces, essential services and landscaped greenery.
The facility will include bike parking and electric vehicle charging stations for residents. Common facilities and services for residents include a swimming pool, gym, movie room, wellness and entertainment spaces, concierge, co-working spaces and a communal rooftop garden.
While UEM Sunrise will serve as the developer and delivery partner for the Collingwood BTR project, Kio – a joint venture between US private equity firm Warburg Pincus and Australia industry specialist Sam Bisla – will be the investor and owner-operator.
“We see strong long-term fundamentals for institutional rental housing in Australia and are focused on well-connected inner city locations such as Collingwood,” Kio founder and managing director Sam Bisla says.
“We continue to see compelling opportunities to partner with experienced parties to deliver high-quality rental housing in supply-constrained urban markets. Collingwood represents the type of well-located, large-scale project that strongly aligns with our long-term vision for the sector.”
Early construction works for the latest Collingwood BTR project are expected to commence towards the end of 2026, with completion targeted for 2030.
Over the last decade, UEM Sunrise’s projects in Melbourne have included high-rise developments such as Aurora Melbourne Central and Conservatory, a development overlooking the UNESCO World Heritage-listed Carlton Gardens. Together, these projects have delivered over 1600 residential units.
“The Collingwood project is a key part of our growth strategy in Australia and reflects our continued commitment to expanding our international development portfolio. With our established track record in Melbourne, we are well-positioned to deliver housing in a well-connected urban location,” UEM Sunrise managing director and chief executive officer Shaharul Farez Hassan says.
Along with Melbourne, UEM is expanding into Perth, having unveiled One Oval in Subiaco last year. One Oval, which is also being designed by COX, is a 342-unit development and a key component of the Subi East revitalisation plan led by DevelopmentWA, the Western Australian Government’s urban renewal agency.
Images: Sourced from UEM Sunrise website.
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