First-ever partnership for BTR project in Melbourne announced

Lendlease and Nippon Steel Kowa Real Estate (NSKRE) today announced the first-ever partnership between the two companies to deliver a waterfront build-to-rent apartment development with an estimated end value of circa $500 million at 899 Collins Street, Docklands.

Under the terms of the new partnership, NSKRE will take a 40 per cent equity share in the build-to-rent venture. Lendlease will seek to bring in additional partners as the project progresses.

The partnership also marks NSKRE’s entry into the Australian market. A developer and real estate business headquartered in Japan, NSKRE has expertise in developing and leasing office buildings, condominiums for sale and logistics in addition to international high-end rental condominiums. 

“This announcement also highlights the continuing demand from our Japanese partners for high quality opportunities across our development pipeline, and we look forward to working together to deliver on NSKRE’s first project in the Australian market,” said Tom Mackellar, CEO Development Lendlease. 

“NSKRE has always prioritised collaborating with reliable local partners when expanding our operations overseas. 

"As we make our inaugural entry into the Australian market, we are delighted to partner with Lendlease, a company renowned for its outstanding achievements and significant presence in Australia,” said Itaru Ishihara, managing director of International Business Nippon Steel Kowa Real Estate. 

Lendlease will develop, construct and act as the investment manager for the development. Early works are underway with construction set to commence this year and due for completion in 2026. 

The development is located on the waterfront in Lendlease’s well established Victoria Harbour precinct, and will be the third build-to-rent residences to be delivered by Lendlease in Australia, with Exhibition Quarter in Brisbane, and a Melbourne Quarter development currently under construction.

“The launch of our first-ever partnership with NSKRE to deliver a new build-to-rent development on Melbourne’s waterfront represents a strategic opportunity to leverage our shared global expertise in this sector as we deliver Lendlease’s third build-to-rent project in Australia,” Tom said. 

Lendlease currently has circa 2,700 build-to-rent apartments in delivery, in addition to an existing 2,800 managed apartments. Together, it brings Lendlease’s build-to-rent portfolio to 5,500 apartments as it continues to leverage its expertise in this growth sector. 

The Docklands development is set to offer 499 residences in a mix of studio, one, two and three bedroom apartments spanning 24 levels.

Residents will enjoy unobstructed water views over Victoria Harbour and south over the Yarra River out to Port Philip Bay, with external communal spaces making use of the waterfront location with an outdoor pool overlooking Victoria Harbour, a dog park and outdoor rooftop BBQ area.

First-class amenities include music and podcast rooms, lounges, a full-sized and fully equipped gym, cinema, wellness treatment rooms and private dining rooms. 899 Collins Street will be all-electric and target a 5 Star Green Star Building rating.

“Moreover, this project aims to address the housing needs of Melbourne’s growing population, focusing on the increasingly popular build-to-rent (BTR) sector. 

"We believe that implementing this project aligns perfectly with our corporate mission 'Communicating with People, Creating the City.' 

"We are committed to ensuring its success through close cooperation with Lendlease and other stakeholders,” Itaru said. 

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