A newly completed Build-to-Rent (BTR) and retail precinct in Melbourne’s inner west has been listed for sale, offering investors a rare opportunity to acquire a diversified, income-producing asset in a high-growth urban corridor.
Union Quarter in Spotswood comprises 332 residential apartments - including 38 Specialist Disability Accommodation (SDA) units—integrated with a full-line neighbourhood retail centre anchored by Woolworths, Dan Murphy’s and Chemist Warehouse. The 1.98-hectare site, just six kilometres from the Melbourne CBD and 200 metres from Spotswood train station, features three street frontages and is positioned within one of the city’s fastest-growing suburban catchments.
The asset is being brought to market via an international expressions of interest campaign closing 28 August, jointly managed by JLL’s Josh Rutman and Jack Bergin alongside Cushman & Wakefield’s Louise Burke and Conal Newland.
Cushman & Wakefield’s Director Living Capital Markets, Australia and New Zealand, Louise Burke said Union Quarter offers a secure and diversified income stream with potential to subdivide, offering added flexibility for an incoming purchaser.
”Union Quarter is strategically positioned in a leading western suburban growth area of Melbourne, only 200m from Spotswood train station, "the location, strong existing tenant base, and high demand for housing options in this area will ensure sustained growth and long-term asset performance" Ms Burke said.
JLL’s Head of Capital Markets Victoria, Josh Rutman said Union Quarter presents a unique opportunity to acquire completed BTR stock in the Australian market, which is enhanced by a seamlessly integrated neighbourhood retail centre inclusive of a full-line supermarket and anchored by leading national tenants.
“As we enter into a new phase of maturity for the BTR market, there has been a great deal of early interest from investors seeking completed assets which minimise exposure to planning and construction risk. This is one of the first purpose-built opportunities to be offered to the open market in Australia to date and will be a good test of appetite in a falling interest rate environment where rental growth is key.”
Australia’s BTR sector has expanded to more than 12,000 operational units, driven by institutional capital and growing demand for professionally managed, long-lease rental housing. Union Quarter is expected to attract both domestic and offshore interest, particularly from groups seeking scale and immediate income in a tightly held segment.
Union Quarter is for sale by International Expressions of Interest, which will close on Thursday, August 28th at 2 pm (AEST).
