Cromwell fields build-to-rent interest in Collins Street tower

The proposed development includes 13,000 sq m of office space and above that as many as 265 apartments and a 182-room hotel.

While Cromwell had already marked the residential component of the development for its potential as BTR when it lodged the application in July last year, interest in the emerging sector has grown since then.

Cromwell’s head of property, Bobby Binning, said the Brisbane-based fund manager had received several approaches from BTR operators after first lodging its plans. Those operators had even urged Cromwell to consider incorporating the space allocated for the hotel into the BTR mix as well.

It’s looking likely that this will be a good project to weave into the BTR space,” Mr Binning told The Australian Financial Review.

“The operators, from a BTR perspective, have said ‘if we were to get involved we’d want to take over the hotel space as well’.”

A generous land tax cut for BTR developments announced in last month’s budget could add a further catalyst to the sector.

Office space in the proposed tower adds to the 33,500 sq m of space in the existing 17-storey tower fronting the Collins Street extension into Dockland.

With Melbourne emerging from a strict second lockdown, the city’s commercial property market is also showing the early signs of a rebound in the making. It was given a big shot in the arm this week with news that tech giant Amazon will take space in Charter Hall’s 555 Collins Street, sufficient to kickstart development of that $1.5 billion project.

“It will take a little bit of time for Melbourne to get back into full swing,” Mr Binning said.