Under the agreement, Greystar will act as the investor and eventual owner-operator of the proposed BTR development through a “fund-through structure”, while UEM Sunrise will be the project’s developer and delivery partner.

The group said the project – valued at approximately A$277 million (RM881 million) – is the first BTR project to be developed by a Malaysian enterprise in Australia.

UEM Sunrise CEO Sufian Abdullah said moving into Melbourne’s burgeoning BTR market marked a new chapter for the group, as it continues its active expansion in the Australian market.

“We have seen significant demand for BTR projects as people seek out more housing options, as well as the sense of a long-term community.

“Melbourne has just become Australia’s most populated city, which made it the right place for UEM Sunrise to invest in the asset class,” he said in a statement today.

Situated at 21-53 Hoddle Street and subject to planning approval, the proposed development is expected to include 400 apartment units across two buildings, with a mix of studios and one-, two- and three-bedroom apartments.

UEM Sunrise said planning documents are expected to be submitted in July 2023, and subject to planning and approval, construction is anticipated to commence in mid-late 2024 and will take about three years.

The property developer completed the purchase of the site at 21-53 Hoddle Street in Collingwood from Jowett Properties in March 2021.