Lendlease and QuadReal partner up for Brisbane build-to-rent project

Property giant Lendlease has joined the build-to-rent rush in Australia, launching a project at the Brisbane Showgrounds with the backing of a major Canadian investor.

The complex will comprise 443 residences in a mix of studio, one, two and three-bedroom apartments over 37 levels.

Property major Lendlease has officially joined the build-to-rent rush in Australia, launching a project at the Brisbane Showgrounds in Queensland with the backing of a major Canadian investor, QuadReal.

The complex, which will provide much-needed housing to long-term renters in Brisbane, will be the first of an expected surge in the developments by the company.

Build-to-rent projects have taken off around the country, particularly in Melbourne, with Sydney and Brisbane following with more projects.

The new kind of complexes are being offered up as a longer-term solution to the rental crisis and also a new way of institutions investing in residential property.

Lendlease has a large portfolio of the projects in Britain and the United States, and will look to bring its experience here as it goes up against global groups already investing in the industry.

Lendlease Australia CEO Dale Connor. Picture: John Feder

Rival Mirvac has projects on the go in Sydney and Melbourne and players ranging from the Daniel Grollo-backed Home business to US private equity group Blackstone are preparing to launch more developments.

“We see enormous potential in the emerging build-to-rent sector in Australia with institutional investors attracted to high-quality residential real estate for its resilient income profile,” Lendlease Australia CEO Dale Connor said.

“In the Australian market we believe there’s strong demand for long-term, premium rentals in quality locations. Our partnership with QuadReal will bring the best of our shared global experience and capability to deliver one of the finest examples in Australia,” he said.

Lendlease and Canada’s QuadReal Property Group will deliver the first build-to-rent apartment building at the Showgrounds site, as flagged by The Australian last year.

Since 2019, Lendlease has delivered more than 2600 residential rental apartments internationally, with another 1500 in delivery in major cities including Chicago, New York and London. Lendlease’s global build-to-rent pipeline is about $28bn with the latest project worth about $300m.

An artist’s impression of the build-to-rent apartment building at Brisbane Showgrounds in Queensland to be developed by Lendlease and QuadReal Property Group.

QuadReal will bring its own experience in managing and developing a global portfolio of 60,000 residential units to the partnership, investing side-by-side with Lendlease, which will be development and investment manager.

The complex will comprise 443 residences in a mix of studio, one, two and three-bedroom apartments over 37 levels. It will include a 25m lap pool with beach edge, music recording studios, BBQ pavilion, a gym, co-working facilities, outdoor spa retreat, dog wash facilities, yoga room and resident lounges.

The building will be fully electric and construction is due to commence in early 2023, with residents expected to move in by late 2025.

Lendlease is chasing other key build-to-rent opportunities in Australian capitals with investors, through both its urban development pipeline and other market deals.

The move is part of a push to “pivot” the company away from construction towards recurring income streams from investments.

Frasers Property and Mirvac have already launched a partnership with the Queensland government to deliver affordable key-worker housing options to the inner city.