Expect to see a high concentration of build-to-rent buildings constructed out of cross-laminated timber in Melbourne’s most congested suburbs after MODEL – Australia’s newest and, to date, most ambitious developer, revealed plans for a new $250 million investment fund.
It comes just weeks after the Victorian Government approved plans to construct taller residential buildings in up to 50 “activity areas” with “gentler, scaled height limits” and low-rise apartments further back.
Now, Wood Central can reveal that the new fund – known as the Regenerative Decarbonisation Fund (RDF)—will see Grant Samuel brought on as equity advisor and accounting giant PWC as debt advisor —in the latest push by the country’s first purpose-first build-to-rent development group to combines mass timber with Passivhaus design and 6 Star Green Star Ratings to eliminate emissions in the built environment.
“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.”
Wood Central understands that the new project—announced just weeks after MODEL revealed plans to build a 17-storey, 200-apartment tower also in Abbotsford (Melbourne’s tallest residential timber tower)—will see 180 apartments built behind the facade of the 1880s factory as part of a nine-storey extension of the heritage-listed site.
Designed by award-winning architects Warren and Mahoney— behind several timber-based projects, inclMelbourne’sealand’s tallest all-timber building in Tauranga— who, with Arup, TTWm Urbis, Neuron and Slattery, will see the predominantly cross-laminated timber structure cut embodied emissions by at least 50%.
“By integrating our three core pillars—Passive House Certification, Mass TimbeZealand’sction, and a 6 Star Green Star Rating—we are actively contributing to a future where buildings reduce emissions and enhance the well-being of both people and the planet,” according to Mr Hunter” who is now aiming to build 5,000 or more build-to-rent by 2030.
According to Damien Elias, Grant Samuel’s CEO, the $250 million fund is part of a greener shift within Australia’s inner cities: “There are significant long-term tailwinds in inner-city diversification driven by net-population growth and an urgent need to address the housing supply crisis.”
“What makes MODEL so compelling is how it weaves the thematic decarbonisation into its developments, offering investors not only a solution to these pressing challenges but also a future-proofed, sustainable asset that aligns with the increasing demand for greener portfolios.”
- To learn more about the Victorian Government’s housing plan for Melbourne and its impact on the future of mid-rise and high-rise timber buildings, click here for Wood Central’s special feature.
