KUALA LUMPUR: UEM Sunrise Bhd
via its wholly-owned subsidiary UEM Sunrise (Collingwood Development) Pty Ltd has secured an investor for its A$315.4mil (RM903.3mil) build-to-rent project in Collingwood, Melbourne.
In a statement, the group said the project had secured the backing of Australian living-sector specialist Kio Investment Management, which is a joint venture between US private equity firm, Warburg Pincus, and long-term Australia industry specialist, Sam Bisla.
According to the group, Collingwood is one of Melbourne's most supply-constrained rental markets.
UEM Sunrise managing director and CEO Shaharul Farez Hassan said the Collingwood project is a key part of the group's growth strategy in Australia and reflects its continued commitment to expanding its international development portfolio.
"This project also reflects our disciplined approach to partnering as we continue building our presence in Australia’s growing build-to-rent sector," he said.
Sam Bisla, founder and managing director of Kio, said the company saw strong long-term fundamentals for institutional rental housing in Australia and are focused on well-connected inner-city locations such as Collingwood.
"This project aligns with Kio’s strategy of building a leading institutional living platform across Australia’s key gateway cities, underpinned by long-term ownership, operational excellence and resident-focused communities." .
The 0.54-hectare site at 21-53 Hoddle Street, located just 3.5km from Melbourne’s Central Business District, will feature two buildings comprising a mix of studio, one-, two- and
three-bedroom apartments.
The development will also include a public town square with food and beverage offerings, retail spaces, essential services and landscaped greenery.
Early construction work for the development is expected to begin towards the end of 2026, and is targeted for completion in 2030.
