One of the world’s largest real estate developers, Hines Global Real Estate, is changing strategy after putting three Melbourne-based sites up for sale.
The sites – based in North Melbourne, Brunswick and South Melbourne – come after the Texas-based giant – which last year developed T3 Collingwood, Australia’s largest timber office building – partnered with Canadian firm Cadillac Fairview in 2022 to spend AU $1.5 billion building its portfolio into the Australian marketplace.
As reported by the Urban Developer, Hines’ Australian focus has shifted from developing build-to-rent sites to managing and operating existing assets. Hines is the world’s second-largest build-to-rent developer, with more than 51,000 properties in the US and UK.
At the same time that Hines is changing track, Wood Central revealed that MODEL unveiled plans for a $250 million investment fund to build a cluster of cross-laminated timber build-to-rent towers across Melbourne.
Known as the Regenerative Decarbonisation Fund (RDF), it is the latest push by the country’s first purpose-first build-to-rent development group to eliminate emissions in the built environment by combining mass timber with Passivhaus design and 6 Star Green Star Ratings.
“The RDF offers a pathway to align investment portfolios with broader climate goals and the country’s regulatory environment,” according to MODEL CEO Rory Hunter, who announced a new 180-apartment development at the former Schweppes Cordial factory in Abbotsford. “Our projects will provide transparency in metrics, appealing to investors seeking higher returns alongside higher impact,” he said, adding that “they offer a competitive edge by aligning with consumer expectations around sustainable housing.”
Last month, Wood Central revealed that Australia’s new wave of build-to-rent projects is being fueled by the Japanese yen, with Nippon Steel Kowa Real Estate (NSKRE), Sumitomo Forestry Group, and Seiksu House piling into the Australian building and construction industry as a hedge against Japan’s sliding housing market, which has seen 2024 housing start shrinking to half of 1994 levels.
- Click here to find out why Hines Global Real Estate is betting on mass timber to grow its global portfolio for office buildings.
Please Note: Wood Central has corrected inaccuracies in the original version of this story.
