Local secures Box Hill site for Build to Rent

Local is thrilled to announce the turnkey acquisition of a 425 apartment project in Box Hill from Jeff Xu’s Golden Age Group.

Valued at $360M the latest acquisition boosts Local’s asset portfolio to more than $1.1B and over 1,300 apartments over three projects in just two years of operation. The Box Hill project will form the second turnkey project in Local’s inaugural external venture, the Local Australian Turnkey Venture, alongside its project in South Melbourne.

Located at 517 – 521 Station Street, Box Hill, the former Whitehorse City Council car park will be transformed to a dual tower project. With architecture and interiors by leading architecture and interiors firm Fender Katsalidis, the 425-apartment development sits at the heart of the suburb’s transformation area, above Golden Age’s new food, lifestyle and retail precinct known as SKY SQR. The expansive three-level podium and food precinct spans approx. 12,000 sqm, including a child care centre, and has been design by world-renowned Oval Partnership.

Residents will enjoy 1,180sqm of outdoor green spaces designed by landscape architect, Aspect Studios alongside a range of exclusive amenities. Residents will have access to an 80 seat co-working space, three private dining rooms, a 25m indoor pool, exercise and wellness studios, games and entertainment rooms, and pet wash and electric car share facilities.

Local Co-CEO Matt Berg said “Golden Age have an exceptional track record in delivering high quality mixed-use projects in sought after locations. The growth in the market of Box Hill has been extraordinary and we believe the location will endure through market cycles. We’re excited to be partnering with Jeff and his best in class team to deliver this project”.

The Box Hill development will be Local’s first BTR residential project outside Melbourne’s inner-city ring. Construction will commence in Q1 2024, with residents moving in late 2025.

With a strong local community and economy built on the back of the Eastern Health Precinct and the Box Hill Institute of TAFE, the area is positioned for incredible growth with the development of the suburban rail loop connecting key metropolitan activity centres with the outer suburbs of Melbourne.

Local’s Head of Capital Transactions, Chris Axsentieff, said the move shows Local’s commitment to providing much needed supply in well-connected inner to middle ring locations.

“With a growing need to deliver quality housing alongside access to education, employment and culture outside of the Melbourne CBD, Local is determined to deliver attainable projects in inner to middle ring locations so more renters can enjoy thriving suburbs like Box Hill, which are tightly held, established residential markets with amenity that appeals to a broad range of prospective residents. We take a focused approach when considering our development sites, identifying the specific needs of an area and what value we can bring the local community,” Axsentieff said.

“When we looked at Box Hill, we saw a close-knit, diverse community and strong local economy, which we want to build on. The current and future Box Hill infrastructure will continue to drive demand and is unique in Melbourne, being somewhat of a second CBD. We are excited to be partnering with Golden Age Group to create residential projects for new and existing residents to enjoy this vibrant and well-connected suburb.”

Golden Age Group Founder and Managing Director Jeff Xu said Local is the perfect partner to deliver the Build-to-Rent component of the Box Hill project.

“We have spent considerable time exploring and researching the right direction for this project to ensure it caters to the suburb’s ever-evolving needs. Box Hill is the perfect location for build-to-rent and we have always seen ourselves as a co-developer of Box Hill so it’s important every project aligns with the council’s strategic vision and the needs of current and future residents. Local’s commitment to community aligns closely with ours and collectively, we will deliver an unprecedented and iconic project to Box Hill, continuing to shape this vibrant suburb by providing a fresh offering.

“We are excited to be working with the calibre of industry professionals of Dan McLennan and Matt Berg who are distinguished leaders in their fields,” he said.

In line with Local’s ESG commitments, 37 apartments in the development are committed to impact housing. Local has successfully established a housing model delivering tangible social benefits whilst achieving commercial returns without the assistance of government support or tax concessions. It’s impact housing model incorporates a minimum of 10 per cent social, affordable and specialist disability accommodation in each of its developments, to grow this to a minimum of 1,500 social and affordable homes over the next decade as part of its development pipeline target of over $5B.