Investa teams up with Salvation Army to bring studio living to Sydney

Living and office heavyweight Investa is betting that big institutions will support its push into the new field.

An artist’s impression of a studio living block planned by Investa and The Salvation Army at 140 Elizabeth Street, Sydney

Property group Investa has unveiled a partnership with The Salvation Army to develop a $230m studio living project near Sydney’s Hyde Park that will become the first of a series of the new-style complexes.

The move is part of the company’s push into the “living sector” under which it is looking to build up holdings in build-to-rent and other kinds of residential ­accommodation.

They will redevelop 140 Elizabeth Street and, when completed, the landmark project will have about 245 fully furnished, self-contained studio apartments as well as amenities including co-working spaces, indoor entertainment and dining areas, and outdoor terraces.

Investa will look to raise capital to bring in local and offshore institutions to back its ambitions in the sector as it hopes to develop more sites in Sydney, Melbourne and Canberra.

The move also marks Investa’s shift into studio living, which comes in the wake of its move into build-to-rent, where it has a complex in Sydney and projects in Melbourne.

Investa chief executive Peter Menegazzo said the venture was “expected to deliver the first Sydney CBD studio living asset in Australia”.

Investa has unveiled a partnership with The Salvation Army to develop a $230m studio living project near Sydney’s Hyde Park.

“We have high conviction in the living sector, evidenced by the 1400 BTR apartments – completed and under construction – and an ability to unlock further suitable studio living sites,” he said.

“There is increasing demand for rental housing options that provide residents with a quality product that is well-located to employment centres and transport, and where they can become part of a community. This evolving housing need has created strong market fundamentals that support diversifying and expanding our living sector portfolio.”

Studio living is more common offshore but is starting to sweep parts of Australia, targeting customers who want to be close to work, public transport, entertainment and amenities, and are chasing a cost-effective alternative to traditional housing in CBD and fringe locations.

Sydney City Salvos manager Mitchell Evans said 140 Elizabeth Street had a long history in The Salvation Army, and the partnership enabled it to maintain an ongoing presence in Sydney’s CBD. Investa will deliver a stratum across ground and level 1 that will be handed back to TSA for the Salvos to own and manage.

Investa chief investment officer Adam Crowe said there was significant tenant demand for greater diversity of housing, planning and regulatory certainty, and Investa’s development skills would allow it to scale up in studio living.

“Studio living, like BTR, is well established overseas and we are very pleased to once again be ahead of the curve in Australia to offer a housing option that meets the demand of customers and our capital partners,” Mr Crowe said.

“We are progressing further opportunities as we deliver on our aspirations to build our living pipeline across BTR, studio living and affordable housing.” Construction is expected to begin in 2027, with the asset expected to be operational in late 2029.

Investa head of new business and origination Stuart Rowe said the group had an initial focus on Sydney – with areas like Alexandria, Erskineville and Surry Hills on the radar – as well as sites in Melbourne, Brisbane, Canberra.

He said the homes had broad appeal and the new style of developments would help provide diversity of housing in markets where it was needed. He said the sector would follow on from build-to-rent, which was maturing in Australia.

Originally published as Investa teams up with Salvation Army to bring studio living to Sydney