Artist’s impression of 245 Normanby Road.
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Build to Rent platform Local acquires South Melbourne site in turnkey deal
Local, a new build-to-rent platform designed to create positive change and social impact in the Australian housing market, has entered into a development agreement with Blue Earth Group to acquire 245 Normanby Road South Melbourne in a turnkey deal.
As covered by Larry Schlesinger in the Financial Review.
Local, a new Build to Rent (BTR) platform designed to create positive change and social impact in the Australian housing market, has entered into a development agreement with Blue Earth Group to acquire 245 Normanby Road South Melbourne in a turnkey deal.
The turnkey agreement will see Blue Earth Group work alongside Hamilton Marino to deliver the BTR project on behalf of Local, which upon completion, will be home to 406 apartments across 40 levels.
The existing design has been reﬁned to ensure it is suitable for Local’s intended target audience and that it aligns with the platform’s key values as it relates to social impact, lifestyle and sustainability.
This included adding more communal space, enhancing the ground ﬂoor oﬀering and enhancing the project’s ESG credentials by creating a fully electric building that will be carbon neutral in operation.
Designed by CHT Architects, the project will oﬀer one, two and three-bedroom apartments and will provide over 1,400sqm of communal space.
Residents will have access to state-of-the-art amenities including private dining, games room, yoga room, gym, lounge/dining facilities, cinema, dog wash and games room as well as nearly 600sqm of outdoor space, inclusive of a lap pool, outdoor playground and outdoor lounge. The 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. 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.”
Dan McLennan, Local Co-CEO and Founder.
Announced in November last year, Local is the brainchild of property executives Matthew Berg and Dan McLennan and is focused on providing a better and fairer alternative 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 and Founder Matthew Berg said the deal demonstrates Local’s capability to partner with developers and 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.”
“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,” said Matt.
“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.”Matthew Berg, Local Co-CEO and Founder.
Construction of 245 Normanby Road is due to commence in October 2022, with the building to be operational by Q1 2025.