Novus has acquired 2 Bowen Crescent, Melbourne for the development of an 18-storey Build-to-Rent building, Novus on Bowen.
Situated 2km south of Melbourne’s central business district, the asset is located in the St Kilda Road precinct less than 200m from the soon to be completed Melbourne Metro Anzac Station. The project has been acquired with an existing Build-to-Sell permit approval for 214 apartments and will go through a modification process to be re-designed into a Build-to-Rent asset consisting of 212 apartments plus the inclusion of wellness-based communal amenities. The project is targeting a 7-star NatHERS rating, will be an all-electric building, powered by renewable generated green power and will exceed National Construction Code (NCC) energy efficiency requirements. Environmental features will include solar PV panels, energy-efficient appliances, rainwater capture and on-site-reuse and integrated smart monitoring systems*. Construction is due to start in early 2024.
Established in 2021, Novus has been actively building out a portfolio of purpose-designed and built Build-to-Rent projects across Australia. Novus on Bowen adds to Novus’ expanding pipeline with existing projects underway in Melbourne (Southbank) and Sydney (Parramatta & Chatswood). Further projects are in due diligence across Sydney, Melbourne and Brisbane.
Novus on Bowen has been acquired on balance sheet and will be used as a seed asset for Novus’ second Build-to-Rent investment vehicle following the success of its initial fund with M&G Real Estate, the Novus Build-to-Rent Trust.
Commenting on the acquisition, Adam Hirst, Co-founder and Chief Executive Officer of Novus, says: “The tailwinds driving the growth of the Build-to-Rent sector in Australia continue to grow with increasing government support for the sector and record low vacancy rates. Projects such as Novus on Bowen highlight the important role the sector can play by activating previously dormant planning approvals and adding much needed supply into the market. As a local specialist, we have a clear vision and value proposition for Build-to-rent in Australia and Novus on Bowen demonstrates the continued rollout of this proposition.”
Australia’s Build-to-rent sector is poised to mature over the medium term due to lifestyle changes, rising home prices and demand for high-quality, purpose-built homes with service-focused property managers. The country’s strong population growth over the past 15 years is set to continue which, in addition to a structural undersupply of apartments, strong rental demand and affordability constraints presents a compelling opportunity for long-term investors.
Jason Goldsworthy, Co-founder and Chief Development Officer, of Novus, added: “It is extremely rare to be able to acquire projects of this caliber with existing development approvals in place. The existing location already benefits from proximity to Melbourne CBD, adjacency to both the Botanical Gardens and Albert Park and fantastic surrounding amenity. The existing local amenity is being further enhanced through the completion of Anzac Metro Station making this one of the most connected locations in Melbourne. These fundamentals align perfectly with our mid-scale convenience-based Build- to-Rent model.”
*NatHERS rating is on average across projects, all residential uses are electric.
