Qld build-to-rent scheme set to generate 440 jobs
Two years after its launch, a $70 million build-to-rent scheme is finally taking shape in inner Brisbane, generating more than 400 jobs.
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More than 400 jobs will be created in two build-to-rent apartment projects in popular inner Brisbane locations that the State Government says will deliver affordable housing to hundreds of people who miss out on social housing.
It comes almost two years after the Government announced the scheme, which Treasurer Cameron Dick claimed was slowed down by the COVID-19 pandemic.
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And it follows a question on notice released in June, which revealed the Government was yet to spend any of the $70 million allocated to the project and had not delivered any rental properties.
But Mr Dick, with local member MP Grace Grace, today announced that Frasers Property Australia and Mirvac would construct the projects in Fortitude Valley and Newstead.
The build-to-rent program aims to deliver affordable housing for tenants who don’t necessarily qualify for access to social housing.
Mr Dick said the pilot program would support 440 full-time jobs over two years.
“The build-to-rent properties in Fortitude Valley and Newstead will offer around 750 apartments in total, with up to 240 of the dwellings to be provided at a discounted rent,” he said.
Asked why it had taken so long, Mr Dick referred to the COVID-19 pandemic.
“I became the Treasurer in the second week of May and in the first week of October, about five months later, I’ve now delivered this project,” he said.
Under the agreement, Frasers Property will develop 354 apartments in a 25-storey tower at 210 Brunswick St, Fortitude Valley, near the train station.
Upon practical completion, Frasers Property will own and operate the development with the State Government subsidising the rental of 144, or 40 per cent, of the apartments by 25 per cent. The remaining 210 apartments in the building will be offered at market rental.
Frasers Property Australia’s chief executive Anthony Boyd said the build-to-rent project will encourage further partnerships between government and the private sector and stimulate institutional investment in the new asset class,
“The outcome will be a greater diversity and supply of affordable rental housing and that’s a positive thing for the community and the economy,” he said.
Construction will commence in mid-2021 and is scheduled to be completed by the end of 2024.
Mirvac’s project, LIV Newstead will deliver about 390 apartments together with over 3000sq m of indoor and outdoor amenity for residents within its $1bn Waterfront Newstead residential community.
There will be 99 apartments in the proposed scheme, which will be offered to eligible tenants also at a 25 per cent discount to market rent.
Mirvac’s managing director Susan Lloyd-Hurwitz said the company had a deep commitment to establishing the build-to-rent sector in Australia.
“Our (build-to-rent) platform and operating model, LIV, has been designed to elevate the customer experience and offer our residents greater security, flexibility and housing choice,” she said.
