Australia’s most ambitious build-to-rent developer, MODEL, wants to raise $600 million in its Regenerative Decarbonisation Fund – up from its previous goal of $250 million – and is now looking to finance a pipeline of build-to-rent cross-laminated timber towers along the eastern seaboard. That is according to Rory Hunter, MODEL CEO, who said the capital could be used for new projects far beyond Melbourne’s inner northern suburbs, as the developer meets an industry projected to hit $930 billion by 2030.
Armed with new JLL research, commissioned by MODEL, Hunter said developments targeting 6-Star Green Star, 9-Star NatHERS and Passivhaus certification can command rental premiums of 5–10%, maintain occupancy at 98%, and slash tenant power bills by thousands every year: “MODEL’s sustainable premium alone is projected to add approximately 400 basis points to base-case IRR over seven years — significantly outpacing traditional BTR benchmarks.”
For Hunter, a former Harvard graduate who, through his work with SoHo Partners, the Song Saa Collective and the Song Saa Foundation helped establish Cambodia’s first Marine National Park, “sustainability isn’t just good practice, it’s great business,” telling Wood Central that its development philosophy, which prioritises timber (where possible) over steel and concrete, attracts lower finaning costs and higher investor interest. And by aligning with global ESG frameworks — including the UN Sustainable Development Goals, the TCFD, and the EU Taxonomy — Hunter said MODEL qualifies for Article 9 “dark green” funds and sustainability-linked loans, offering up to 10 basis points of cheaper debt.
At the forefront is MODEL’s Melbourne-based Johnston development in Abbotsford, with striking renders showcasing what will be the city’s tallest mass-timber residential tower and the country’s first large-scale Passivhaus apartment complex. Designed by Fraser & Partners, the project will halve embodied carbon, run on 100% renewable energy and deliver average utility savings of $1,000 per tenant each year.
“This isn’t just about outperforming the market, it’s about reshaping the future of housing,” he said. “Our residents live in homes that are cheaper to run, healthier to inhabit, and more community-oriented. For investors, it’s a compelling opportunity to lead the transition toward a more resilient and responsible built environment while achieving alpha returns.”
Today, Wood Central spoke with Andrew Dunn, organiser of Timber Construct, who revealed that Hunter will be the first presenter in what is a stacked program: “The build-to-rent market represents a huge growth opportunity for timber-based construction, especially for cross-laminated timber and glulam hybrid systems. As our first presenter, Rory will set the mood and energy for the conference.”
“From buying an island in his 20s and being named one of the World Economic Forum’s Young Global Leaders to completing a 37-day solo sail from Hong Kong to Australia, Rory’s journey is nothing if not remarkable. We’re eager to hear how he found the build-to-rent, why he is so bullish on the asset class and why he believes mass-timber systems are the answer for delivering these projects at scale,” Dunn said.
Wood Central understands that Hunter’s keynote will be part of a session chaired by Georgia Coutsodimitropoulous, the Marketing and Brand Manager at Timberlink – the operator of Australia’s first cross-laminated timber and glulam plant, NeXTimber, which will also include a presentation from Chethiya Ratnakara, the managing director of Versobuild, who is busy building data centres out of timber across Asia. “Early-bird tickets close September 26,” Dunn said. “TimberConstruct is more than a conference—it’s to build the next generation of Australian assets out of low and zero-carbon timbers.”
