Gold Coast development: ‘Build-to-rent’ towers set to become reality on Gold Coast

Build-to-rent apartment towers are fast becoming popular ventures in Sydney and Melbourne. Now, the trend is hitting the Gold Coast property market.

BUILD-to-rent apartment towers, quickly becoming hot-to-trot ventures in Sydney and Melbourne, appear poised to become a big reality on the Gold Coast.

Ron Bakir, the entrepreneurial fellow who founded the Homecorp residential property group, could have the first of four towers under way at Varsity Lakes by May.

The looming landlord to tenants in nearly 400 apartments will be undertaking the venture with a minority partner and some rather large backing.

The word dribbling out of Sydney is that he has US asset manager Morgan Stanley as a funding partner, at least in the first two buildings.

The presence of the American group, which manages some $700 billion of assets, appears to be a ringing endorsement of Varsity Lakes as a build-to-rent location.

The only towers on the Gold Coast that are solely rented are Brisbane developer Phil Usher’s Southport H2O ‘twins’, which were built for sale but retained when the GFC killed the market.

Ron Bakir's planned build to rent project.

A third Usher tower is nearing completion and has been on the market in one line.

Ron’s partner in his project, apparently with a stake of less than 30 per cent, is a company linked to builder Condev’s Steve Marais.

Their Varsity towers are earmarked for a 1.3ha Main St site, made up of land bought by the Sunland Group for $3.85 million in 2013 and later enlarged by snaring land earmarked for a cul de sac, Capital Court, from the city council.

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Two years ago the site was moved into 8500 Pty Ltd, owned by Sunland, Ron, Harvey Norman executive Steve Cavalier, ex-Retravision store owner Sep Abedian, and the Marais company.

Ron, 42, and the Marais entity are believed to be buying out the co-owners.

The Varsity Lake buildings will house 388 one and two-bedroom apartments.

It seems they will, in keeping with the build-to-rent formula that has worked elsewhere, have resident lifestyles facilities such as a large pool, barbecue areas, a big gymnasium, dog-wash park, cinema, and café.

Other concept photos show the outside area.

The build-to-rent business, big offshore, quickly is evolving in Australia, although one old-timer has been at it for years -- Harry ‘High-Rise’ Triguboff,’s today sitting on 4500 apartments.

New players stepping into the game include listed group Mirvac, builder Grocon, non-bank lender Qualitas, and US property giant Greystar.

Funding is coming from sources such as a Singaporean sovereign fund and Dutch pension giant APG.

Meanwhile, mooted Varsity Lakes backer Morgan Stanley is no new face to the Gold Coast property scene.

It moved on assets of developer Mark Howard at the end of the GFC, had a slice of the mortgage pie in landmark properties such as the Oracle towers at Broadbeach and Soul in Surfers Paradise, and held a mortgage on the Horizon Shores marina.

Ron, the man it is backing at Varsity Lakes, kicked a winning goal last year when he sold 51 per cent of his Homecorp Constructions arm to Japanese home-builder Misawa, controlled by car giant Toyota.

Businesses near his Varsity Lakes venture could be winners when it’s completed – they will have hundreds of potential new customers.

SYMOND INCREASES MAIN BEACH PLAZA HOLDING

Aussie Home Loan's chief executive officer James Symond. Picture: Supplied.

JAMES Symond, a 48-year-old member of the family that sprouted Aussie Home Loans founder John Symond, appears to have increased his holding in the Main Beach Plaza retail-office building.

James, who grabbed seven of the 10 strata titles for $5.174 million prior to auction in 2018, reportedly has agreed to buy an eighth title from its owners of 37 years.

It’s the space previously occupied by Thyme restaurant, which has moved into another Symond title.

DEVELOPMENT COLLECTION BUYS MULTIMILLION DOLLAR PROPERTY

Sovereign Islands. Picture Mike Batterham

MATTHEW Malec, who with wife Joanna has invested more than $20 million on Sovereign Islands properties, has extended his Paradise Point buying to outside the elite Broadwater estate.

Malec-linked company The Development Collection has paid $3.05 million for a 2026sqm Falkinder Ave property that is approved for a three-floor project with 35 apartments.

The Malecs also have moved to lighten their Sovereign load, seeking offers for a King Charles Drive home bought for $2.675 million a year ago.

AGENT EXPECTED TO BUY BOUTIQUE MAIN BEACH BUILDING

M3565 is a luxury development on the Gold Coast's Main Beach.

MIKE Willems, an agent who’s has moved from prestige housing to the commercial field, is expected to emerge as a buyer in Harvey Norman CEO Katie Page’s boutique Main Beach building M3565.

The Ray White agent and wife Dayna have just sold, pre-auction, their pink Main Beach home for $4.75 million.

Two new deals in M3565, at $4.5 million and $4.75 million, were flagged last month, taking to three the sales in the three-year-old property.