Build-to-rent residential – A growing sector for Qualitas
The GQ BTR platform, jointly owned by GURNER™ and Qualitas, commenced construction this year on two BTR assets, being Beach House and Madison Grand.
Beach House is on a prime site in St Kilda Junction in Melbourne, the project will deliver 297 residences across two towers spanning 12 and 28 levels. The plans were designed specifically for BTR use, including over 3,700sqm of GQ’s signature world-class resident amenities and 1,563sqm of net lettable area across commercial and retail spaces.
Madison Grand is located in Southbank in Melbourne and will deliver 394 apartments across 39 levels when complete in early 2025.
GQ owns two other BTR sites at North Fitzroy in Victoria and Parramatta in New South Wales which are anticipated to commence construction in 2024.
The GQ BTR platform is a part of our heavily weighted allocation of capital to the residential sector, currently 71 per cent of our invested FUM. Our position is underpinned by the current macroeconomic backdrop that sees residential vacancy at its lowest level due to an entrenched, and deteriorating housing undersupply in Australia. The BTR sector is well-placed to service this growing deficit.
From an investment perspective, the long-term underlying fundamentals have created conditions ripe for the next phase of growth in both apartment prices and rental growth over the medium-term, plus the sector is aligned to investors demand for assets generating defensive and resilient cashflows through all economic cycles.
Currently, GQ has an existing portfolio of over 1,400 apartments, a pipeline of a further 3,600 apartments and gross committed capital of $3.2 billion. The platform integrates development, design, delivery, capital raising, fund and investment management and property management capabilities in a specialised BTR residential platform.
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