Gold Coast developer Ron Bakir’s Homecorp Property Group is teaming with global funds manager Morgan Stanley to create the city’s first dedicated build-to-rent project, a $200 million venture at Varsity Lakes.
The Capital Court project, comprising four towers of nine to 16 storeys, is to go on an elevated site at Varsity Lakes in the heart of the central Gold Coast’s education and technology hub.
It is expected to become a long-term home for some renters, including families.
The development, to be undertaken in two stages, will involve 450 one and two-bedroom apartments on a 1.3ha site.
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It has been bought for $11.25m from a syndicate that earlier acquired it from the Sunland Group. The project’s first stage is expected to start before Christmas.
The Ron Bakir-founded Homecorp, which has delivered more than $1.5 billion in residential projects over the past 16 years, describes the project as a major step toward a diversification of its portfolio into an emerging sector of the property market.
Build-to-rent is an established business model in the US and UK where it provides a stable, long-term income-generating asset class.
Gold Coast developer Homecorp Property Group and global funds manager Morgan Stanley plan to create the city’s first dedicated build-to-rent project, a $200 million venture at Varsity Lakes. Picture: Supplied
“This project leads Homecorp into a new era by leveraging us into a sector that we believe will command a much higher market share over the next decade,” Mr Bakir said.
“It’s a compelling business model that has been recognised by Morgan Stanley at a time when affordability constraints are impacting on homeownership levels.
“This will be the first purpose-built project for the Gold Coast to utilise the build-to-rent model and it comes at a time when tight rental vacancies have persisted for many years.
“The Varsity towers will provide residences where families may choose to live for many years at a time, even across generations, so this project has been designed with that specific purpose in mind.”
Homecorp CEO Ron Bakir in his Surfers Paradise office. Picture: Regi Varghese
Mr Bakir said Capital Court was crafted to create a village atmosphere by providing lifestyle amenities, including a residents’ club, cafe, expansive outdoor swimming pool area, a large gymnasium, a dog-wash park, games room and a cinema.
He said the Gold Coast’s Condev group was the intended builder of the project.
Morgan Stanley, which has a successful track record of investing on the Gold Coast, has $US552 billion in funds under management and has been an active investor in the global build-to-rent sector.
Homecorp’s construction arm, which was established by Mr Bakir in 2014, is majority-owned by Japanese industrial giant Toyota.
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