Build-to-rent platform Local has reached an agreement with Blue Earth Group to acquire 245 Normanby Road, South Melbourne in a turnkey deal.
Blue Earth Group and Hamilton Marino will deliver the project for the developer, which will comprise 421 apartments over 40 levels when complete. The design, undertaken by CHT Architects, has been enhanced by Local’s key values of social impact, lifestyle and sustainability.
The project will offer one, two and three-bedroom apartments in a fully electric, carbon neutral building. Residents will be given access to an array of amenities including private dining, a games room, yoga room, gym, lounge/dining facilities, cinema, dog wash and games room as well as nearly 600 sqm of outdoor space, inclusive of a lap pool, outdoor playground and lounge. The complex’s ground floor will offer coworking space, e-games, retail tenancy and the introduction of a communal cafe/wine bar via the entry lobby on Normanby Road.
“We are thrilled to be working with Blue Earth together with Hamilton Marino and their broader project team, who have a longstanding track record of delivering quality apartment projects in Melbourne for nearly 30 years,” Local Co-CEO and Founder Dan McLennan says.
“The market fundamentals for build to rent are particularly strong and continuing to gain pace. The scale of this particular project supports our model of incorporating “salt and pepper” Impact Housing in our developments and is just one of many BTR projects currently in the Local pipeline.”
Local, established in November 2021, seeks to provide strong value-centric alternatives to the current rental market. The platform will seek to provide diversified housing at an attainable price in an inclusive community for residents. Local Co-CEO Matt Berg says the agreement with Blue Earth demonstrates the organisation's ability to work with builders to deliver fund through and turnkey transactions.
“These types of transactions are quite common in the UK market and we expect to see more of them in the Australian market as developers with great sites realise the need to deliver a specific type of residential project that is tailored to our customer’s needs,” he says.
“Of the five similarly structured deals completed in the BTR space since its inception, Dan and myself have managed three of them.”
“They are significantly more complex than a typical acquisition and certainly require an investment in time and collaboration to ensure you set the right foundations for the project and ensure everyone’s interest is protected along the journey. Collaboration is part of our DNA at Local and we have built up considerable expertise in this area at both Local and in our previous roles.”
“This is a specific strategy for us moving forward as these types of deals provide the opportunity to partner with experienced developers like Blue Earth and allocate the development risk and opportunity between owner, developer and builder in a way that is fair to each. In the current environment, it also allows us to acquire for a fixed price.”
Construction of 245 Normanby Road is due to commence in October 2022, with the building to be operational by Q1 2025.
