Build-to-rent (BTR) innovator MODEL has announced its second project in Abbotsford as it continues with its commitment to lead the charge in Melbourne’s residential sustainability evolution. Meanwhile it is also launching its $250m Regenerative Decarbonisation Fund (RDF).
Architectural and sustainability leaders have been engaged for the project, including Warren and Mahoney, Arup, TTW, Urbis, Neuron and Slattery, ensuring that the project achieves its sustainability targets. Like the Johnston Street tower, this development is designed for a 6-Star Green Star rating, 9-Star NatHERS, and net-zero emissions, with 10% of apartments designated for affordable housing.
“Breathing new life into such a historically significant site is incredibly exciting. With two projects in Abbotsford, and the launch of our dedicated Regenerative Decarbonisation Fund, we are reaffirming our mission to respond to the climate crisis at scale, create better communities and facilitate sound investment returns,” says MODEL CEO, Rory Hunter.
“The RDF offers a pathway to align investment portfolios with broader climate goals and the changing regulatory environment. Our projects will provide transparency in metrics, appealing to investors seeking higher returns alongside higher impact. And they offer a further competitive edge by also aligning with consumer expectations around sustainable housing.”
The development will adaptively reuse the iconic 1886 former Schweppes Cordial factory on Lithgow Street to create 180 Passivhaus certified apartments within a sustainable living hub. The project aims to showcase how historic spaces can be completely reimagined for a sustainable future whilst, importantly, preserving architectural heritage.
The project follows closely on the heels of MODEL’s first submission – a 17-storey mass timber BTR tower on Johnston Street, poised to be Melbourne’s tallest residential timber building. Both projects reflect MODEL's commitment to pioneering large-scale Passivhaus certification
The Lithgow Street site will see a multi-level extension rise behind the heritage façade, delivering 14,000sqm of gross floor area with a development cost of $110m. Utilising mass timber will enable a 50% reduction in embodied carbon compared to traditional methods, creating a development that honours its past while pushing sustainability boundaries.
MODEL’s sustainability commitment has garnered attention from Australian Passivhaus Association. Its CEO, Alexia Lidas, praises the ambition of the project.
“The calibre of MODEL’s leadership team and its commitment to Passivhaus signals a pivotal moment for sustainable developments in Australia, where the opportunity to decarbonise at scale becomes a real possibility. The outcomes have the potential to set new and aspirational benchmarks on how we create warm, efficient and sustainable places to live,” Lidas says.
The $110M development was brokered by Jesse Radisich from JLL Development Site Services, with Baker McKenzie’s Dora Stilianos providing legal counsel.
MODEL has also partnered with prominent investment bank Grant Samuel as equity advisors and PWC as debt advisors, as it aspires to be a global leader in sustainable real estate.
“There are significant long-term tailwinds in inner-city densification driven by net population growth and an urgent need to address the housing supply crisis. What makes MODEL so compelling is how it weaves the thematic of decarbonisation into its developments, offering investors not only a solution to these pressing challenges but also a future-proofed, sustainable asset that aligns with the increasing demand for greener portfolios,” says Grant Samuel CEO, Damien Elias.
