Oxford gets green light for build-to-rent in Sydney CBD
A 39-storey build-to-rent building in the heart of the Sydney CBD has won planning approval, as part of a $1 billion two-tower development on Pitt Street by Canada’s Oxford Properties.
With 234 apartments, the residential tower will rise above the southern entrance of the Sydney Metro Pitt Street station, the first such BTR project in the CBD. Its companion tower, a 39-level office tower, was granted development approval last month.
Partnered with local property platform Investa and CPB Contractors, the Oxford-led consortium is building the metro station and the two towers above. Work on the station started late last year while construction of the residential tower is expected to kick off later this year.
Oxford is planning to fit out the BTR tower with an array of amenities, including a wellness floor, a rooftop terrace and adjoining communal space. An entire floor will be dedicated to work-from-home spaces. A social lounge and 682sq m retail component is also part of the plan.
“The residential market in Australia has been rapidly evolving in recent years, particularly in cities like Sydney where housing affordability is a persistent issue,” said Alec Harper, Oxford’s Australian head.
“The emerging build to rent sector offers a more a customer focussed and flexible solution.”
The Pitt Street project is a key element in a broader BTR strategy which Oxford is rolling out in the local market. That pipeline has swelled to 1000 units, with the inclusion of a site in Melbourne’s inner west which Oxford acquired last year.
It hopes to develop a $450 million project on the Footscray site and is targeting more than 5000 units over the next 10 years.
Oxford is among a handful of major players which are making the early running in the emerging BTR sector. Mirvac has developed its first such project at Sydney Olympic Park and has leased 60 per cent of the 315-unit tower. The listed developer has a swag of further BTR plans in the pipeline, including in Melbourne.
Greystar has raised about $1.3 billion for its BTR projects in Melbourne while US BTR giant Sentinel Real Estate has projects up and running in Perth and is targeting a $1 billion portfolio. Rich Lister Tim Gurner has also made plans to develop in the sector.
Tax breaks introduced by the NSW and Victorian governments in the past year have given the sector a boost as well.
However, the federal withholding tax regime which levies the impost on BTR projects at 30 per cent, double the rate imposed on other commercial projects, remains a brake on development, according to industry players.
