A US-based build-to-rent giant has made a strategic move for some northern exposure in the Australian market, by swooping on a 1.44ha development site near one of Queensland’s biggest sporting arenas at Robina on the Gold Coast.
Sentinel has acquired the development-ready parcel at 5-8 Stadium Drive, a deal believed to be worth close to $20 million, in a move that marks the first purpose-built institutional build-to-rent play on the Gold Coast by one of the sector’s powerhouse platforms.
Sentinel’s planned development, adjacent to Robina Stadium and between the city’s future 2032 Olympic Athletes’ Village and sprawling Greenheart parkland project, is set to give rise to 300 rental apartments, which will target carbon neutral certification and a 5-Star Green Star rating, The Urban Development reported.
The deal, brokered by CBRE and Colliers, follows the successful completion and leasing of Sentinel’s flagship Element 27 BTR development in WA as well as the construction of its first Victorian project north-west of Melbourne’s CBD, which was set to be completed later this year.
“After bringing our premium and sustainable build-to-rent communities to WA and Victoria, we’re excited to expand our footprint to the Sunshine state,” said Keith Lucas, Sentinel’s Australian managing director. “We’re committed to delivering sustainable and high-quality living environments that provide renters with a refined rental experience and offer Queenslanders greater housing choices. This is especially important as rental vacancy rates in Queensland continue to tighten and areas like Robina expect to see a significant boom in population and jobs growth over the next decade.”
This latest move from Sentinel has been boosted by its partnership with Dutch pension fund manager PGGM, announced in August last year, to develop and manage a $1.5-billion national portfolio of about 2,500 build-to-rent apartments.
PGGM will inject more than $700 million of initial development potential into the venture, with Sentinel to provide investment management, development management, and property management services to the partnership.
Ernst & Young said the sector has the potential to rapidly grow in the next 10-15 years and was tipped to account for 10% of the nation’s rental pool, which was equivalent to 375 projects totalling 350,000 apartments worth an estimated $320 billion, The Urban Development reported.
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