Morgan Stanley launches build-to-rent project on the Gold Coast
US investment bank Morgan Stanley has entered the build-to-rent space in Australia with a joint venture project on the Gold Coast.
US investment bank Morgan Stanley has joined the ranks of big players getting into build-to-rent in Australia.
Rival groups international companies including Blackstone, Greystar and Sentinel already have projects started and there is already a strong local contingent.
The $200m project planned for the Gold Coast will partner with local Queensland developer HomeCorp.
Located at the bustling education and technology hub of Varsity Lakes, the Capital Court project will comprise four towers ranging in height from 9 to 16 storeys across the 1.3ha site to deliver a range of one and two bedroom units.
Morgan Stanley is a global leader in real estate investment and management, with $US552bn in funds under management. It has a longstanding track record of investing on the Gold Coast and is an active investor in the global multi-family and build-to-rent sector.
HomeCorp founder and chief executive officer Ron Bakir said the emergence of the asset class offers a range of opportunities for the coast.
“It’s a compelling business model that has been recognised by Morgan Stanley at a time when affordability constraints are impacting home ownership levels,” he said.
“This will be the first purpose-built project for the Gold Coast to utilise the build-to rent model and it comes at a time when tight rental vacancies have persisted in the local market for many years.”
HomeCorp’s construction arm, which was established by Mr Bakir in 2014, is majority-owned by Japanese industrial giant Toyota.
The joint venture project hopes to create a “village feel” within the residences, with a shared rooftop, and an extensive range of lifestyle amenities including a cafe, an outdoor swimming pool area, a large gymnasium, a dog-wash park, games room and a cinema.
First-stage construction of Capital Court is expected to start in late 2020.
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