Image: Existing render of original Flinders Bank project.
Mirvac has secured a location for a build-to-rent development on the site of the former Melbourne Convention Centre at 7-23 Spencer Street.
The property, purchased from Chinese-backed developer Century Group Australia, was originally slated as the mixed-use office and residential tower component of the Flinders Bank project, which also includes a five-star hotel and public plaza.
The original proposal for the residential component included 20 apartments reserved for low- and middle-income earners, with Multiplex the preferred builder. Multiplex’s involvement in the project is now unclear with the acquisition of the site by Mirvac.
Related News: Mirvac Expands Build-To-Rent Aspirations to Melbourne
The $200m sale, which was initiated on Christmas Eve, adds to Mirvac’s growing portfolio of land acquisitions since the firm raised $750 million in institutional funding in early 2019.
The parcel of land reserved for Australia’s first St Regis hotel was not included in the sale.
Mirvac is set to deliver a mixed-use urban precinct comprising a 40,000sq m office tower and 430-unit multi-family apartment tower.
The office tower component, named Flinders West, would offer floorplates upwards of 2,000sq m, and the build-to-rent apartments are said to ease the burden of housing affordability in Melbourne’s inner city.
Plans for the Spencer Street site have been in the pipeline since 2017, with initial designs which catered for 1100 apartments being abandoned after not receiving approval.
Century Group partnered with Fender Katsalidis to redesign the Flinders Bank project, although it is not known whether Mirvac will engage the architect for the new development.
Mirvac chief executive Susan Lloyd-Hurwitz said “Flinders West is earmarked to be one of Melbourne’s most transformative precincts over the next three to five years.”
“This site provides us with an opportunity to add to our high-quality Melbourne office portfolio and grow our burgeoning build-to-rent portfolio in a location supported by strong transport links, ongoing infrastructure investment and favourable demographics.”
Mirvac has another two build-to-rent projects in its Melbourne pipeline, having recently acquired sites opposite the Queen Victoria Market in the CBD and in Brunswick, in the city’s inner-north.
The one hectare site in Brunswick has the capacity for 400 units, and is set to yield a potential value of $200 milion.
The property giant has partnered with developer PDG Corporation to deliver the build-to-rent project on Therry Street via a fund-through deal to the tune of $333.5 million, which is set to result in 490 residences.
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