Government-backed build-to-rent project in Sydney on hunt for industry partner

The NSW Government is on the hunt for an industry partner to develop and operate a project with 600 build-to-rent and affordable homes in inner Sydney.

Build to rent site at the heritage-listed clothing store building in the sub-precinct of Redfern-North Eveleigh, NSW. Picture: Supplied

A rare build to rent project in the heart of Sydney’s CBD is in the works, with the Perrottet government on the hunt for industry partners to jointly develop and operate a Redfern site.

About 600 build to rent and affordable homes, a new parkland and the adaptive reuse of a heritage-listed clothing store building in the sub-precinct of Redfern-North Eveleigh are planned near Redfern station.

The build to rent boom has swept the nation but most sites so far are in Melbourne as land is cheaper, making projects easier to stack up. But operators are launching in the city, in inner ring suburbs and in Parramatta in the city’s west.

The government is seeking an industry partner chosen to develop and manage the build to rent site on a 99-year ground lease.

NSW Minister for Infrastructure, Cities and Active Transport Rob Stokes said the people that make the city function should not have to commute for hours to get to work, which had prompted the building of more key worker housing in the inner city.

“This government has committed to set aside 30 per cent of all residential stock on our urban renewal precincts for affordable and diverse housing and on this project we’ll deliver triple that target,” he said. “This will provide much-needed secure housing for renters.”

Three quarters of the homes in the Redfern project were earmarked for build to rent housing and 15 per cent as affordable housing for key workers and will provide “much-needed secure housing for renters,” Mr Stokes said.

“This is another city-shaping precinct that will create 3000 square metres of new, green public parkland, reimagine the heritage-listed clothing store into a space for the community, and play a critical role in bolstering Sydney’s status as a 24-hour global city.”

Build to rent site at the heritage-listed clothing store building in the sub-precinct of Redfern-North Eveleigh, NSW. Picture: Supplied

Transport Asset Holding Entity chief executive Benedicte Colin said the precinct was being delivered in partnership with Transport for NSW and had been subject to community consultation.

“We’ve worked with the community on the vision for this precinct and will continue to do so over the coming months,” she said. “This proposal highlights TAHE’s ability to deliver innovative housing models, ideally located next to public transport, while maintaining long-term ownership for the people of NSW,” she said.

Build to rent site at the heritage-listed clothing store building in the sub-precinct of Redfern-North Eveleigh, NSW. Picture: Supply

Build to rent housing has also become a feature in NSW in recent years, with listed developer Mirvac leading the sector.

Its first BTR property, Liv Indigo, opened two years ago at Sydney Olympic Park, and the developer has multiple projects in the pipeline across Brisbane, Melbourne and Sydney.

As traditional developers find it tougher to get their apartment projects up as interest rates rise, this is stalling pre-sales in overstocked markets, encouraging developers to switch to the build to rent format.

Originally published as Government-backed build-to-rent project in Sydney on hunt for industry partner