Following six months of planning and feasibility testing, BTR innovator MODEL shares its first project – a 13,000sqm (GFA) structure in Abbotsford – which will not only be the tallest mass timber residential building in Melbourne, but also the first large scale apartment complex in Australia to achieve Passive House certification.
MODEL on Johnston will offer 200 apartments across 17 storeys, is located adjacent to the Victoria Park train station at 276 Johnston Street and will set out to be a global exemplar in sustainable development.
Along with Passive House certification, the building will target 6 Star Green Star and 9 star NatHERS ratings, a 50% reduction in embodied carbon (when compared to standard developments), be 100% powered by renewables, and operate at net-zero emissions.
The $120M development was brokered by JLL Australia, with Dora Stilianos of Baker McKenzie managing the legal transaction.
MODEL CEO Rory Hunter says the blueprint for setting the new standard for decarbonising at scale, is the hiring of expert talent and the integration of key project development partners at every stage.
“We’ve built an incredibly strong team at MODEL (more below) and put together a crack team of collaborators who we will work with at all key touchpoints, including: architects Fraser and Partners; sustainability consultants HIP V. HYPE; structural and timber engineers BG&E; urban planners at Urbis; and, quantity surveyors and carbon planners at Slattery.”
Hunter says MODEL’s ‘decarbonisation at scale’ approach not only differentiates the developer in its commitment to sustainability – it offers a valuable safeguard on returns for investors.
“MODEL’s financial framework centres around the value returned over the life of the build, with outlay costs being both offset and capitalised on by significant operational costs savings and greater long term resilience resulting in a de-risked asset.”
“And by managing the development internally and focusing on sustainability, MODEL is positioned to capture the premium returns already seen in sustainable commercial office buildings.
“JLL's recent paper Early Mover Advantage (Nov 2023) shows that commercial tenants are willing to pay higher rents for Net Zero properties with strong sustainability credentials and that valuations benefit from lower cap rates. We believe this trend will extend to the build-to-rent sector.
“Our pioneering approach offers investors not only reduced operational costs and efficiency but also the potential for enhanced financial performance as well as future proofing for evolving regulatory requirements.
“MODEL on Johnston will be the first example of our ‘no compromises’ approach: decarbonising at scale; creating a warm and dry thermal envelope along with a deep sense of community for residents; and delivering strong, ongoing returns for investors.
“We’re about creating great places to live and enhanced experiences for renters to enjoy. We’re looking at urban, inner city locations with great connections to public transport, rich cultural offerings in the neighbourhood and 10% of MODEL on Johnston’s apartments will be affordable housing.”
Joining Hunter to champion the development and management of this and other upcoming projects – effective immediately – is MODEL’s Head of Development, Matthew Mattiske, and Chief Operating Officer, Phil Shelley.
“I’m proud to mark this milestone alongside such an incredibly experienced and accomplished duo,” Hunter says.
“Having Matt in the role of Head of Development will ensure we’re decarbonising at scale and building exemplar structures. While Phil will lead the delivery side to provide outstanding amenity and an unparalleled renter experience. Cumulatively, this ladders up to healthy and sustainable returns for investors who get our point of difference.”
Image: Supplied
